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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: sandeep who wrote (76024)7/18/2007 10:34:20 AM
From: Real Man  Read Replies (1) | Respond to of 94695
 
It does work 95% of the time, and is the biggest money
maker on WS, otherwise WS firms would not be using it.
Volativity smile, yes. Put/calls premiums that are far in
the money or out of the money need to have higher iv.
But Yes, we could move higher, and WS firms would still make
money on options they sold. They will just make more if we go
down a bit, not so much on SP as on QQQQ -g-