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Quote from OddTrader:

The above reviewer can be found with this book at amazon.com :

The Four Biggest Mistakes in Option Trading (Trade Secrets Ser) (Paperback)
by Jay Kaeppel

:D
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That is a "book" that is often given away free by many websites. It's mainly a vehicle for promoting the Essex Trading Company software. At about 50 pages long, large print and small form factor, it contains nothing revolutionary and also makes some assertions that are highly debatable.

As mentioned earlier, published authors are not necessarily any better or more knowledgeable. Indeed, some information in print on this topic is dangerously misleading IMO.

MoMoney.
 
Quote from momoneythansens:

That is a "book" that is often given away free by many websites. It's mainly a vehicle for promoting the Essex Trading Company software. At about 50 pages long, large print and small form factor, it contains nothing revolutionary and also makes some assertions that are highly debatable.

As mentioned earlier, published authors are not necessarily any better or more knowledgeable. Indeed, some information in print on this topic is dangerously misleading IMO.

MoMoney.
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This author is also a staff writer for Optionetics.

Jay Kaeppel
Staff Writer and Trading Strategist
Optionetics.com ~ Your Options Education Site

Here is his latest article on that site:

http://www.optionetics.com/articles/article_full.asp?idNo=15370
 
Quote from momoneythansens:

As mentioned earlier, published authors are not necessarily any better or more knowledgeable. Indeed, some information in print on this topic is dangerously misleading IMO.

MoMoney.
More...

Hi MM,

Are there any good sites/ books for plotting charts of the underlying's price/index vs the option's implied volatility? Your (or anyone's) feedback would be appreciated. TIA.
 
Quote from OddTrader:

Hi MM,

Are there any good sites/ books for plotting charts of the underlying's price/index vs the option's implied volatility? Your (or anyone's) feedback would be appreciated. TIA.
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IV has more to do with potential for movement than actual resultant movement.

So if you don't want to experience a drop in IV, don't buy options right before earnings unless you've absolutely considered you'll have a drop in premium after the results, even if the stock doesn't move.

Rather than a numerical perspective, its important to consider the psychological view. Wouldn't you as an options seller want more return for your bet in the even of higher risk that your sale will result in losses? This is purely what runs the show.
 
Quote from scriabinop23:

IV has more to do with potential for movement than actual resultant movement.
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You mean movement of the underlying or the option or both?
 
Quote from scriabinop23:

IV has more to do with potential for movement than actual resultant movement.

So if you don't want to experience a drop in IV, don't buy options right before earnings unless you've absolutely considered you'll have a drop in premium after the results, even if the stock doesn't move.

Rather than a numerical perspective, its important to consider the psychological view. Wouldn't you as an options seller want more return for your bet in the even of higher risk that your sale will result in losses? This is purely what runs the show.
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what are you talking about ?
 
Quote from scriabinop23:

thats expensive. I use IB at $.75/contract no minimum and no ticket charge.

i also switched over from etrade a while ago. best thing i ever did, although its good to keep a little cash in the etrade account just in case there are tech problems with IB. Same goes the other way around.
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TOS has a new program that charges .95/no.. tkt chg (20contracts min) and no cancellation fees. Love the platform..ex Harris/Brownco/E-trade (for 10 minutes) user
 
Quote from RichardRimes:

TOS has a new program that charges .95/no.. tkt chg (20contracts min) and no cancellation fees. Love the platform..ex Harris/Brownco/E-trade (for 10 minutes) user
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I've heard you can call or email them and ask for better rates (like no ticket charge on 10 or more contracts), but I haven't tried.

BTW they only charge one ticket for multileg trades.
 
Quote from IV_Trader:

what are you talking about ?
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you mean, 'whatchu talking about willis?'
:)

maybe my language isn't clear. I'm only saying IV often dissipates with news just coming out, regardless of the underlying's response (up, neutral, or down).

Of course, IV sharply rises often following sharp moves, but thats a whole different issue.

And the last paragraph just explains justification for premiums going up from the point of view of options sellers (as their risk is higher if known big news is pending at a soon date).
 
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