does it refer to the decay of otm options? do otm options decay faster than atm (or close to atm) options?

could you guys please explain to me what smile decay refers to?thanks in advance.

thanks daveangel

thank you mcarreira

<t>Hi guys,i have a followup question, actually i posted it somewhere else before i saw this message (my bad), i am copying my question below... below is from "dynamic hedging" directly page 195:vol shifts can operate like a time acceleration, with an effect that is linked to the length of the optio...

<t>below is from "dynamic hedging" directly page 195:vol shifts can operate like a time acceleration, with an effect that is linked to the length of the option (more exactly the square of the vol shift is proportional to the length of the option)...a longer dated option, say a one-year call with 20 ...

<t>Hi all,i am just wondering how strikes are set for a strangle in the broker market. let me rephrase my question using the following hypothetical example.USDJPY spot 110, 2y forward 100. (market convention is to use forward hedge for 2y and out)25 fwd delta JPY call corresponds to strike 95 and a ...

thank you Dave. A more general question, what are the things you look at when you balance the spot ladder? What is considered "balanced"? Thanks again.

Sorry, didn't make it clear what i was trying to ask. i have options expiring tomorrow and they are reflected in the table below. how do i adjust my delta (by buying or selling additional underlying stocks) to bring my position as flat as possible as a market maker? thanks again.

<t>options gurus, i have a question about how to hedge strike risks. say somehow you have obtained a table below for your stock options book for a horizon of one day:spot pnl delta gamma110 200 123 15105 135 54 7100 0 15 12 (assume current spot is 100)95 -35 20 -2590 -120 55 -20basically what it say...

thanks! think this is what it meant

maybe i heard it wrong, how about streaming prices or something like that?thanks

maybe i heard it wrong, how about streaming prices or something like that?thanks

what do traders mean by "streaming the market"?thanks in advance...

Sorry, could anyone please explain to me what TED spread is? Thank you!