You might read Jeff Augen on volatility and price distortion.
Words of caution (especially generalizations) from any given trader --
regardless of their history, qualifications or experience -- about
what's real and what's imagined by the all-powerful market-maker could
well be based on an understanding of the market that's subjective to
the trader and years or even decades out of date.
On Thu, Jan 21, 2010 at 7:33 AM, James Fink <jimfink@yahoo.com> wrote:
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> A quote from former options market maker Tony Battista in the latest issue of thinkMoney magazine (Winter 2010, p. 40):
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> "Options are fairly priced. If you think you see money lying on the floor, don't pick it up. Chances are you're getting into a trade that you understand a lot less than a market maker does."
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