Guy knows his shit, there should be more people bashing all the idiots trying to praise options trading without any knowledge.
¿how can one deal with incomplete option chains?
- Thread starter rtw
- Start date
Here's a radical idea - rather than 'bashing' people who don't yet have sufficient options knowledge, and calling then 'idiots' why not help and guide them with civility and common courtesy?
Oh, there’s plenty of that on ET. ET has to be one of the most civil forums out here. I come here for the knowledge that no option book provides, however, a bit of bashing never hurt nobody. I think it adds little humour to otherwise so serious discussion forum.
mr. Jacobson,
i appreciate your interest.
to clarify, there are something like 30 symbols (aapl, mu, twtr and the like) that are the most traded by the masses. i have never had issues with the option chains for those symbols and, consequently, those are the only ones i trade.
for the symbols that lack liquidity, i don't think that geography could be a significant factor. when checking out symbols with awful liquidity like mkl or options on futures from méxico the issue is there. however, i have had a remote dedicated server with hetzner (1,000 mbs/second symmetrical intrnet connection) in europe for almost a year and it is the exact same story when i connect from that server.
i will keep investigating the models that market makers use to price options contracts and how could retail traders approximate those models. options on futures are really attractive but it would be impossible to trade them automated with the system i have helped developed when their option chains lack reasonable bid - ask quotes. i would need to be able to approximate fair values for those contracts to be able to trade them automated.
well, you know, this pattern where several anonymous accounts all praise and defend another anonymous account is somewhat prevalent on the internet. it is always one same guy who creates multiple accounts to respond to his own crap and try to not look as irrelevant and sorry as he really is.
in this case this guy with his many accounts is dead wrong about everything he has posted.
this is a fragment from googl's option chain:
the deepest in the money puts have a slightly negative extrinsic value and this is fairly frequent for such expensive contracts. it is imbecilic to suggest that the value of the otm calls at the same strike price levels could be approximated using the extrinsic value for the itm puts when it is a negative number. and yet there are other accounts saying that guy know his stuff.
