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A few questions concerning Options.
I was wondering if OptionScope is a good pricing model for options.
If not what is the best Option Pricing Model.
Do you guys know much about market makers. They seem to be the ones to
win, in Option trading.
They develop Synthetic Equivalents compared to just buying Calls or
Puts.
For example suppose a market maker finds 100 calls, expiring in 30 days,
trading at $4 1/4 and the puts at $3 1/4 with the underlying stock
trading at $100. He can put all of these together to win. He sells the
call, buys the put and buys the stock. He takes in $1 and, at the same
time, hedges away his exposure to any changes in the price of the stock
prior to expiration.
My question is can the small guy do this to make money. If so wouldn't
it be good to set up a group of people to do it with. One person owns
the stock, the other person writes the call and the other buys the Put.
And the profit is split up.
This is just an idea and I would love any criticism.
Yours Sincerely
Ben Clayton
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