At an absolute minimum, you need to understand the relationship between the VIX and the underlying, even if all you're doing is buying calls....
If you want to trade IV, then you have to become intimately familiar with its behavior. The IV of each contract has a distinct personality....
I think some of you will find the attached article of interest. I'm not sure I believe the results claimed for this approach, and the study was...
Chris - you have a system that you think will work, but are not using it because it won't work with options, and you only actively trade options....
Trend following is tough these days. You might want to look at countertrend trading instead. If you've found a strategy that looks successful...
252 is indeed the approximate number of trading days in a year. But the standard is to use calendar days until expiration to calculate option...
It's very true that implied volatility - the VIX for example - is a completely different animal than price, and behaves quite differently....
You probably know this, but it's not the exchange that changes its order to match yours. Exchanges don't put in bids or offers - market makers...
Sounds like you're approaching it the right way then. As for answering your question - I did the best I could here:...
I mostly agree with this - not that anyone has been giving bad advice in this thread, just that I think the OP has the same misconception about...
Thanks for that reference maw. My own reading of it is it's just Haug having fun being bombastic and provocative, which he clearly loves doing....
A little twinge of remorse is human. Just so long as you don't allow it to lower your standards.
Rudolf, I think you're trying to see gamma scalping as a complete, soup-to-nuts option trading strategy. It's not. It's just a piece of the...
Ha ha - well you're tenacious MAW - I'll give you that! And here I thought I had you pinned by quoting your own "bible" to you. But I guess like...
Very common mistake. People think if they don't know what play to make at a given moment, it's THEIR fault - if they were only better traders,...
If I tell you this is incorrect, you won't believe me. So I'll refer you to the book you yourself called "the bible of options," by Espen Haug....
Wow. Beautiful.
Okay, with these numbers we'd have to be talking about a stock not a futures contract. But why is your cost of carry rate 3 times more than your...
How was I laughing at you? I think I gave a very straight answer to your question by inviting you to come up with a scenario where, in fact,...
Let's keep in mind that the math is just someone's best attempt to describe real life. So let's skip the "middle man" and go straight to the...
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