I have a general understanding of how margin works and have historically just focused on my excess liquidity and SMA balances to make sure I am in...
I guess another question would be, would my broker automatically label it a wash sale? I am not sure if they do that for individuals who do flips...
Does anyone have any strong opinions on here as to whether these two ETFs are considered "Substancially Identical" for tax purposes(wash sales)?...
Tao, thanks for posting this research. Goldman laid it out nicely. I would be curious to know how much of those returns come from the interest on...
If I wanted to compare IV skew of OTM calls and OTM puts, what would be a fair comparison in regards to moneyness? Given BSM deals only with log...
So institutions don't hit bids far OTM to take advantage of the IV skew because the gap risk is simply too high?
Thanks for the reply! All this is great info for me. I am really just trying to find the most efficient way to "sell insurance" as part of my...
tbh I am going off academic work on the volatility risk premium, which is why I have not done any back testing. Any advice on the best way to back...
Because I am looking at returns over the long term. I understand on any given day, month, year things could get really bad. This sort of a...
If I am understanding you, you are just saying there ends up being more potential convexity in your vega position as you go farther OTM, right?...
Very interesting. I realize as prices fall vol will rise and the option sellers need to be compensated for this risk. Is this what you are saying?...
Can you elaborate? My initial point was asking why market makers wouldn't sell vol far OTM to capture higher IV. If they are hedging delta I...
Separate names with a comma.