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My suggestion is drink a beer and relax and stop trying to point out flaws in other people's posts This couldn't be further from the truth as evidenced by the total amount of my posts as compared to the total amount of idiotic statements that are made in the option threads. If you read my...

A little testy when someone questions you? For your information I have priced these in my head with people screaming at me, I was a market maker on the CBOE. I understand the assumptions that are made on the floor when people talk of certain spreads. I posted: I obviously didn't explain...

With all due respect Maverick, you need to brush up on your synthetics. You wrote: Yes you could that but by being long both the 95 call and 105 call you are putting in a long bias into the position. Where as I just have bought the 105 call and the 95 put so I have no bias to direction...

I obviously didn't explain what I meant clear enough. I'm not advocating fly's in the back months. I wanted to point out that the fly that you recommend initiating in the front month is an iron butterfly (+1 95 p/-1 100c/-1 100p/+1 105c). I am suggesting putting on the synthetic equivalent...

Maverick, the position you explained is a good one. I just wanted to add that you dont have to sell the straddle and buy the strangle in the front month to create the fly you are synthetically long the 95/100/105 call or put spread. What Im trying to say is that your front month fly for a 3...

Meteoxx and Trajan are correct. When pricing locks and synthetics, you should use two different rates, the long rate and the short rate. If you put on a conversion, you should price the position using the long rate because you are long stock, reversals should be priced using the short rate...

Rbane, you should listen to trajan, what he says is true. Your posts lead me to believe that you really don't have a clue about the option markets. Lose the attitude before you blow out. By the way I am a former market maker and I have blown out as well. :)

Meteoxx is right, spread your risk off. There is not much covered in this combination. By buying stock and selling the 10 calls you are synthetically short the 10 puts. So you are basically short the 10 puts synthetically and the 7.5 real puts. Another way to look at this position is you are...

cdgtrader, I agree with Gene in that market making training is very useful. I live in Tucson and traded at the CBOE email me at dagve7@hotmail.com if I can help out.

Does anybody have anything to say good or bad about the phoenix bright office? thank you

options perception and deception by Charles Cottle has an excellent few pages on scalping gamma with the spot and with vertical spreads.

It is incorrect to write that movement does not matter when owning a bullet. It is true that the initial delta is very small, however the position has positive gamma. A bullet, the combination of a long deep in the money put and long stock is synthetically equivalent to an out of the money...

Anyone care to explain the opening only strategy? Is it some sort of index arb scalp?

I was a market maker at the cboe from 1997-2000 with O Conner and Company. Everything that Gene wrote is exactly right and why I and many others left the floor. The market making business is now dominated by the large trading firms. Because they trade so much volume they can trade with...

I was a market maker at the cboe, what kind of information are you looking for? It was a grind and stressful but I can't imagine a better place to learn the business.

I am looking for some different ideas on how to trade pairs. Do people just look at highly correlated stocks and look at their past price differentials and trade when they get out of line? Or is there a better statistical way to trade pairs? Any ideas on how to trade pairs would be...

thanks for the info everyone, very helpful.

I have heard that envelopes are a popular trading strategy at bright trading. Does anyone know what an envelope is and how to trade them? thanks

thanks for the help guys

I am interested in importing real time quotes into an excel spreadsheet. Can anyone recommend some data vendors that offer this at a reasonable price?