i think youre just about in the dark if you dont. im not really active in
options, but yes, i do.

A great example of using volatilty is

http://www.philstockworld.com/2008/05/04/earnings-dilemma-solved/

This is the only smart way to play earnings provided you can get a decent
pattern like the example from www.ivolatility.com

If I bought/sold near month options, I would spend more time on the time decay
as it becomes parabolic close to the expiry.

Another big one that doesn't have a greek letter is max pain - another reason I
prefer to be on the sell side.

let us now analyze the theta component of options. mathematically it is
represented as the change in the price of an option with respect to the change
in time. Theta values are always negative. These values are always negative
because they represent the value the option lose due to time decay. The longer
out an option is purchased the less time decay matters. The closer an options
approaches towards expiration its time decay value will decrease at a faster
rate. If theta is -.75 this means you lose 75 cents a day. Also it is important
to realize that time decay is not linear in nature. It can be graphically
represented by the square root of x function.

I only worry about time decay, historical vs implied volitility and of course
the implicit value of the option.

Volitility is the main one I concentrate on as the other 2 are very simple - if
there's high implied vs historical in the stock, it's a great time to sell, low
it's a great time to buy.

Options to me are like insurance though, only the sellers consistantly make
money.

Lets also go over some other important and yet logical points. As expiration
approaches the deltas for in the money/at the money calls fall more than the
deltas out of the money. This makes complete sense becuase deltas are generally
smaller for calls out of the money already. We can think of deltas as a measure
of the probability a stock ends up in the money. If the probability of this
event is already low its unlikely that it can get much lower.

Since delta is the derivative of the price function for the option (aka delta
measures the rate of change in the price of the options with respect to the
rate of change in price of hte underlying security). As volatility increases
deltas will increase accordingly because the underlying security is moving more
and so will the options.

william will answer in time about v,ge, and x....im thinking about v and
different steal play which is MT or AKS.

Furthermore i want to point out some characteristics. Delta can also be thought
of as the probability that an option will end in the money. Delta values go from
-1 to 1..-1 to 0 are used for puts. and 0 to 1 are used for calls..if i buy a
call at the money my delta will be .5 or it has a 50% chance of ending in the
money or out of the money. the deeper the call in the money the larger its
delta. the deeper the call out of the money the smaller its dela

i didnt blurp i unfortunately do not watch any business t.v.

Did you wtch Fast Money on Friday?

I was laughing so much when Dylan was inthe pits trying to do the handsigns to
buy options. When he asked what he just did, Jon Najarian just told him he
bought 2,000,000 Worth of options.

Luckily the market went his way and he made 125,000 worth of fake money.

I cant wait to step into the space. I must first get better at trading b4 I
step into that area and get into something I dont understand.

4 greek symbols (Variables) have a very strong effect on options

1.DELTA
2.VEGA
3.THETA
4.GAMME

DELTA- to the change in the price of the option in respect to the change in the
price of the underlying security

VEGA-Change in the price of an option with respect to the change in the
underlying securities volatility

Theta- change in the price of an option with respect to the change in time

GAMMA- Change in the value of delta with respect to the change in the value of
the underlying security



i will be presenting mathematical models here dealing with
derivatives/integrals.