Here you will find information and news about stock markets, online trading, investing, stock brokers. Great collection of tools for everyday trading, like real time stock quotes, interactive stock charts, options calculator, earnings calendar, market comments and suggetions for good reading material makes your trading day profitable!

Monday, August 01, 2005

About Options Trading, Implied Volatility

Stephen comments a Barron's column in his blog:
Barron's had some interesting stuff this weekend, and I was particularly intrigued by the decision of Kopin Tan -- who pens a lightweight column that leans heavily on useless "strategist" drivel -- to highlight the trading talents of a retail Put-Seller who brags, "if you had $127,730 and wanted to make 27% return a year", he asks, "how would you do it?"

That's a rhetorical question, you understand, and the answer is "put selling."

The more I think about it, the more amazing it is that Mr. Tan and his editor would publish something like this with Volatility plumbing the depths.

But what do I know.... according to Tan the guy "attended trading seminars to learn about options", so I suppose he qualifies as an expert.

And something else....I think that there is more of this sort of thing going on than you can imagine -- including Call Selling, a really, really suicidal gig -- but we won't know for sure until the Big Flood comes in and shows where all the bodies are buried.

Yes, then we'll know which Option Sellers completely relied on Normal Curve and Textbook Probability Distributions, not understanding the concept of "Fat Tails."

If you think I'm talking anatomy, then you and Copin' Kopin are on the same wavelength.
I couldn't agree more with Stephen on this issue. Selling naked options today (I don't take into account stock-picking, but we are talking about overall market, ain't we?) is real suicide. Take a look at the following graph, showing the implied volatility of QQQQ (NASDAQ-100 Index tracker):


I have done the exact opposite way and have a QQQQ straddle bought recently in my account. As you see, the volatility is at extremely low levels currently. You always have to look the price/risk ratio. How much room there is for QQQQ volatility to go down? And how much room for growth? What do you think global uncertainties (London bombings, the death of Saudi's King, etc) will do with volatility? Sure, it will help to boost it up.

See also:
Alchemy Of Trading: Sunday Notes From The Trading Turret: Stra-Tee-Gerists

35 Comments:

Anonymous Anonymous said...

This is a good post. I have a site about missouri real estate please look at it if you can.

10/24/2005 05:26:00 PM  
Blogger Google Page Rank 6 said...

Good blog very valuable info, I'll book market and come back offten, I did't see any adsense ads though. You should think about adding them. It is good revenue to you as a webmaster/ blogger.

I have a blog about The Facts of Forex

It is a pretty good blog if you want more information on How to make moneyTrading.

10/26/2005 03:19:00 PM  
Anonymous Anonymous said...

I just came across your blog, and wanted to drop you a note telling you how impressed I was with the information you have posted here. I also have a stock trading education blog, so I know what I'm talking about when I say your site is top-notch! Keep up the great work, you are providing a great resource on the Internet here!

10/26/2005 04:45:00 PM  
Anonymous Anonymous said...

Hey, landed on your blog, nice stuff. I found a cool new tool for our blogs... www.widgetmate.com It helps get latest news for our keywords directly on to our blog. I added it on mine. Worked like a charm.

6/10/2007 05:32:00 AM  
Anonymous Anonymous said...

I congratulate, what necessary words..., a brilliant idea

12/30/2009 12:50:00 AM  
Anonymous Anonymous said...

Your blog keeps getting better and better! Your older articles are not as good as newer ones you have a lot more creativity and originality now keep it up!

1/07/2010 08:51:00 AM  
Anonymous Anonymous said...

ah at last, I could find this post again. You have few [url=http://tipswift.com]useful tips[/url] for my school project. This time, I won't forget to bookmark it. :)

1/19/2010 12:55:00 PM  
Anonymous Anonymous said...

[url=http://www.kfarbair.com][img]http://www.kfarbair.com/_images/_photos/photo_big8.jpg[/img][/url]

בית מלון [url=http://www.kfarbair.com]כפר בעיר[/url] - אינטימיות, [url=http://kfarbair.com/services.html]שקט[/url] . אנו מציעים שירותי אירוח מגוונים גם ישנו במקום שירות חדרים הכולל [url=http://www.kfarbair.com/eng/index.html]אחרוחות רומנטיות[/url] במחירים מפתיעים אשר יוגשו ישירות לחדרכם!

לפרטים אנא גשו לעמוד המלון - [url=http://kfarbair.com]כפר בעיר[/url] [url=http://www.kfarbair.com/contact.html][img]http://www.kfarbair.com/_images/apixel.gif[/img][/url]

1/20/2010 07:09:00 PM  
Anonymous Anonymous said...

Good dispatch and this mail helped me alot in my college assignement. Gratefulness you as your information.

2/02/2010 11:53:00 PM  
Anonymous Anonymous said...

Brim over I assent to but I dream the brief should secure more info then it has.

2/08/2010 07:49:00 PM  
Anonymous Anonymous said...

like gambling? ardour las vegas? ticket the all sprightly [url=http://www.casinolasvegass.com]casino[/url] las vegas at www.casinolasvegass.com with onto 75 modish unsupportable [url=http://www.casinolasvegass.com]online casino[/url] games like slots, roulette, baccarat, craps and more and obtain a crushing in existent spondulicks with our $400 cost-free bonus.
we be tribulation with hazy be pegging apt b wealthier games then the elderly online [url=http://www.place-a-bet.net/]casino[/url] www.place-a-bet.net! few more free casino games and free [url=http://www.2010-world-cup.info]casino bonus[/url] you can find at the 2 new [url=http://www.buy-cheap-computers.info]casino[/url] guides : www.2010-world-cup.info and www.buy-cheap-computers.info .

2/14/2010 05:39:00 AM  
Anonymous Anonymous said...

My Girl friend just broke up with me and I have uploaded every nude PIC I have of her to the net. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

2/20/2010 04:56:00 AM  
Anonymous Anonymous said...

Set upon e set one's sights on once again Our Risqu‚ Prices at www.Pharmashack.com, The Difficulty [b][url=http://www.pharmashack.com]Online Slight [/url][/b] To [url=http://www.pharmashack.com]Buy Viagra[/url] Online ! You Can also Concoct Elephantine Deals When You [url=http://www.pharmashack.com/en/item/cialis.html]Buy Cialis[/url] and When You You [url=http://www.pharmashack.com/en/item/levitra.html]Buy Levitra[/url] Online. We Also Be subjected to a Dangerous Generic [url=http://www.pharmashack.com/en/item/phentermine.html]Phentermine[/url] In tote of Your Nutriment ! We Release up Pre-eminence epithet [url=http://www.pharmashack.com/en/item/viagra.html]Viagra[/url] and Also [url=http://www.pharmashack.com/en/item/generic_viagra.html]Generic Viagra[/url] !

2/20/2010 10:58:00 AM  
Anonymous Anonymous said...

Well I just got a text message from my girl friend that she broke up with me! Bad news for me but great for you. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

2/22/2010 10:10:00 AM  
Anonymous Anonymous said...

[url=http://www.c-medical.biz/]buy cialis[/url] and [url=http://www.medical-250l.biz/]viagra online[/url] at the finest and most trusted generic drugs online pharmacies : www.c-meical.biz and www.medical-250.biz ,
nourish an intention on our hushed prices reassure of viagra, cialis, levitra and more drugs online.

2/22/2010 05:29:00 PM  
Anonymous Anonymous said...

My Girl friend just broke up with me and I have uploaded every nude PIC I have of her to the net. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

2/24/2010 07:00:00 PM  
Anonymous Anonymous said...

good day dudes. I'm honestly into shoes and I was looking for that exact make. The prices due to the fact that the shoes are around 340 dollars everwhere. But finally I set this locate selling them for half price. I exceptionally love those [url=http://www.shoesempire.com]prada sneakers[/url]. I will absolutely buy these. what can you tell me about these?

2/25/2010 03:23:00 PM  
Anonymous Anonymous said...

Well I just got a text message from my girl friend that she broke up with me! Bad news for me but great for you. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

2/26/2010 09:36:00 PM  
Anonymous Anonymous said...

Well my girl friend just broke up with me over email about an hour ago so thought this would be a great place to start spreding her pics like she did her legs. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

2/28/2010 11:10:00 PM  
Anonymous Anonymous said...

Well my girl friend just broke up with me over email about an hour ago so thought this would be a great place to start spreding her pics like she did her legs. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/03/2010 01:56:00 AM  
Anonymous Anonymous said...

Well I just got a text message from my girl friend that she broke up with me! Bad news for me but great for you. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/05/2010 04:38:00 AM  
Anonymous Anonymous said...

My Girl friend just broke up with me and I have uploaded every nude PIC I have of her to the net. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/07/2010 10:06:00 AM  
Anonymous Anonymous said...

My Girl friend just broke up with me and I have uploaded every nude PIC I have of her to the net. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/09/2010 12:49:00 PM  
Anonymous Anonymous said...

I know you and your friends are memebers on this site Erica... Well guess what? Now they get to see you slutty naked ass! HAHAHAH. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/11/2010 07:46:00 PM  
Anonymous Anonymous said...

Well I just got a text message from my girl friend that she broke up with me! Bad news for me but great for you. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/13/2010 05:53:00 PM  
Anonymous Anonymous said...

Genial dispatch and this enter helped me alot in my college assignement. Thanks you for your information.

3/15/2010 09:49:00 AM  
Anonymous Anonymous said...

I know you and your friends are memebers on this site Erica... Well guess what? Now they get to see you slutty naked ass! HAHAHAH. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/16/2010 03:26:00 AM  
Anonymous Anonymous said...

Well I just got a text message from my girl friend that she broke up with me! Bad news for me but great for you. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/18/2010 03:18:00 AM  
Anonymous Anonymous said...

My Girl friend just broke up with me and I have uploaded every nude PIC I have of her to the net. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/20/2010 09:22:00 AM  
Anonymous Anonymous said...

Well it turns out my girl friend of 2 years has been cheating on me for weeks. I know she and her friends hang out on this site so thought it would be the perfect place to post every last nude photo and video I have of her. Just go to http://www.gf4free.com/members/surferdude23/ Enjoy!

[url=http://www.gf4free.com/members/surferdude23/][img]http://www.gf4free.com/members/surferdude23/uploads/9.jpg[/img][/url]

3/22/2010 02:00:00 PM  
Anonymous Anonymous said...

רציתי לחלק איתכם בחוויה שעברתי לאחר הפיגוע בדולפינריום. במשך כשנתיים לאחר המקרה, הרגשתי רע מאוד, חסרת שמחת חיים, עייפה ומדוכדכת. בכל דרך רפואית רגילה לא הצלחתי לעזו לעצמי ולכן פניתי ל- [b][url=http://www.maker.co.il/3_15707/%D7%9E%D7%90%D7%9E%D7%A8/%D7%9B%D7%9C-%D7%94%D7%A2%D7%95%D7%91%D7%93%D7%95%D7%AA-%D7%A2%D7%9C-%D7%A0%D7%A4%D7%A9-%D7%94%D7%90%D7%93%D7%9D-%D7%95%D7%A2%D7%99%D7%A1%D7%95%D7%99-%D7%A8%D7%A4%D7%95%D7%90%D7%99-(%D7%9E%D7%A1%D7%90%D7%92%60).html]עיסוי[/url][/b] רפואי אלטרנטיבי. המליצו לי על מעסה מקצועי מ-Spa-Vip.co.il - עיסוי עד הבית, אשר כולל עיסוי איורוודה מצויין אשר עורר לי את החושים תוך טיפול אחד בלבד. קשה לי להמחיש את השינוי אותו עברתי, אומנם זה היה טיפול מסאג שוודי ראשון, חזרה השמחה לחיי, פיזרתי את השיער ויצאתי מה- [b][url=http://www.academics.co.il/Articles/Article12945.aspx]מסאג[/url][/b]' עם כוחות חדשים, מחויכת ומוכנה להמשך.

[b][url=http://www.tapuz.co.il/blog/ViewEntry.asp?EntryId=1679344]עיסוי שוודי[/url][/b] הוא עיסוי רפואי משולב עם ריח של קטורת, מוזיקה נעימה ומוזיקה נעימה. ההתחלה של עיסוי היא מגע עדין על המגבת לאחר חשיפה של הגוף מכף רגל ועד ראש. מריחת שמן חם מכף רגל ועד הראש, אחרכך תנועה מלטפת ועדינה מכף רגל ועד ראש ובחזרה. אחרי כמה תנועות מפנקות עוברים לצד השני של הגוף, אחרי התנועות על צידו השני ישנו שילוב של לחיצות רפואיות מכיוון שהגוף התרגל למגע נעים ומרגיע וזה גרם לשרירים להרפות מעט... כל זה בטיפול ספא מפנק של עיסוי עד בית הלקוח.

אישית לא האמנתי כי דברים כאלה יכולים להיות עד אשר התענגתי עם מסאז שוודי מושקע כלכך, המעסה המקצועי הגיע עד לביתי עם מגע שלא הכרתי אשר לא האמנתי שיכול להיות. אני ממליצה בחום לכל אחד ואחת אשר חשבו על מסאג', עיסוי או פינוק מטריף חושים בחגים על Spa-VIP.co.il.
[img]http://spa-vip.co.il/_images/apixel.gif[/img]

[url=http://spa-vip.co.il/#][img]http://spa-vip.co.il/_images/&%231506%3b&%231497%3b&%231505%3b&%231493%3b&%231497%3b-&%231512%3b&%231508%3b&%231493%3b&%231488%3b&%231497%3b.jpg[/img][/url]

4/21/2010 02:56:00 PM  
Anonymous Anonymous said...

looking for [url=http://www.web-house.co.il/SEO%20Specialist.htm]seo specialist[/url] ? check out our [url=http://www.smashflash.com/]free twinkling of an eye templates[/url] and get your own falsh website for democratic today, mammoth selection of free [url=http://www.smashflash.com/]flash templates[/url] for you online, many new designs with ir without flash.
so choose your [url=http://www.smashflash.com/]free flash template[/url] from the larget [url=http://www.smashflash.com/]flash templates[/url] selection. so get your [url=http://www.smashflash.com/]free website templates[/url] now and build your [url=http://www.smashflash.com/]free website[/url] .

6/25/2010 11:53:00 AM  
Anonymous Anonymous said...

[b]King Of Pirate Online[/b]

King Of Pirate is a fully 3D-designed multiplayer online game based on 5,000 years of pirate history.

In it, comical pirate characters and creatures travel the high seas and encounter intricate story-based quests,

wondrous cities and beautiful landscapes in their search for treasures fit for a king – or a king's ransom!

Though the excitement of ship-to-ship combat is a heady brew for newcomers and veterans alike,

many players take pride in their place among the community. Whether you seek to enforce the laws of the KoP world,

http://www.KingOfPirate.com





Tales of pirates private server
pirate king online private server
top/pko private server
private server
igg top
igg

7/10/2010 11:47:00 AM  
Anonymous Anonymous said...

Since coming into existence online casinos have made quite the splash. For the most part people are no longer held back by the boundaries of where they live and the laws that govern the area. Now pretty much anyone who lives in this world can take part in all the gambling that they desire without having to leave the comfort of their own home. There are however several things that one needs to look for when they are seeking out the online casino of their choosing.
[url=http://www.casinolesoleil.com]online casino[/url] http://www.casinolesoleil.com casino At download-based, you download software which connects to the casino, and play games through the software. Often the software can be downloaded in the back round while you enter your player information.
[url=http://www.redlotuscasino.com]online casino[/url] http://www.redlotuscasino.com casino Remember also that these sites are not based in the United States, so the national laws that regulate casinos do not apply to this. Keep in mind that since they are outside the country, you might have a hard time on keeping track of them if you ever you were cheated. Remember, distance is daunting if you do not have the means of getting your money back. [url=http://www.triumphcasino.com]casino[/url] http://www.triumphcasino.com casino http://www.affrewards.com [url=http://www.affrewards.com]casino affiliate program[/url] Bingo is a beautiful game of luck, which involves patience, rapid coordination between hearing and searching out the numbers and lots of fun. [url=http://www.bingokisses.com]bingo[/url] [url=http://www.bingoeuphoria.com]bingo[/url] bingo bingo http://www.bingokisses.com http://www.bingoeuphoria.com Your aim would be to cover the prescribed pattern with the bingo letters, by coordinating the letters and numbers called. The patterns can be anything like, u shape, t shape, etc, though it usually is horizontal or vertical. As soon as you get the pattern, you should shout bingo and you get the prize. In case there are others who shouted at the same time as you, the prize will be shared among all winners.
http://www.casinolesoleil.com http://www.redlotuscasino.com http://www.triumphcasino.com http://www.bingokisses.com http://www.bingoeuphoria.com http://www.pulsebet.com http://www.affrewards.com http://www.thehighrollerclub.com
http://www.buyphentermine1.com [url=http://www.buyphentermine1.com]buy phentermine[/url] http://www.norxbuy.com buy phentermine

8/15/2010 11:43:00 PM  
Anonymous Penny Stock Newsletter said...

I have never invested in options You can get plenty of leverage by buying penny stocks without an experation date.

12/12/2011 02:15:00 PM  

Post a Comment   (feel free to post relevant comments)

<< Home