what are some interesting/counterintuitive things you have learned trading options?

[cdcaveman]

Quote from justrading:

Do you run any comparisons between GARCH forecast and realised vol?

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=299502

umm.. this is a little different..
"We find the EGARCH option pricing model (Duan, 1995) performs well in determining the shape of the volatility smile for different maturities in the period of January 2000 to August 2001."

read more purely Garch...

watch this... to get a understanding of the mechanics of the math..
listen to this guy he explains it very well..

http://www.youtube.com/watch?v=o-Kf6Y419hU

 

[justrading]

Quote from cdcaveman:

umm.. this is a little different..
"We find the EGARCH option pricing model (Duan, 1995) performs well in determining the shape of the volatility smile for different maturities in the period of January 2000 to August 2001."

read more purely Garch...

watch this... to get a understanding of the mechanics of the math..
listen to this guy he explains it very well..

http://www.youtube.com/watch?v=o-Kf6Y419hU

Yes I just came across the link so I'm sharing. Have not read it yet.

I like the video, plus he has others that look equally good. Thanks.