That is true, but short calls basically give unlimited upside risk. And short puts limited downside, also if the equity is trending up long-term...
Yes true...if long equity are informed & rational...however looking at for instance CBOE indices like the PUT-write index it seems vol...
Hm, lately I've been thinking and studying historical returns on sale of volatility...and as much as people like to say vol is overpriced, quoting...
aware
Well, it's available on IB, but looking at historical data the b/a spread seems all over the place. For March 11, 1hr after open today it was 1.00...
The b/a spreads on these are ridiculous. CBOE seems insistent on killing all their products from the get-go with these ridiculous market makers...
It doesnt matter as long as you're aware of the limitations of the model. But as moneyjoe said above, it's highly unlikely that the model will...
Hell if I know, I dont use TOS for modeling VIX. I dont even trust it for equities...before new years 2013 I remember talking to their support...
I know what hedge ratios are. I'm simply arguing that calculating hedge-ratios is pointless, because they are essentially exposed to contango /...
You do realize the TOS IV simulation assumes IV increases equally accross all maturities, correct? In other words, it's not realistic at all......
Yes, I've looked into VIX historical data extensively before. I'm not sure about the utility of hedge ratios. I mean, the front-month VIX future...
So essentially you're hedging 1-month vol w/ 6-month vol (Aug). You are taking massive term structure risk. You're not really hedging vol, but...
Just a question, how far out are your SPY/IMW butterflies? Because if VIX spikes, Aug vix will lag behind as the whole structure goes into...
Trend looking strong. After 2 months of virtually no growth (ES was at ~1840 Dec 31 2013, and is now only 15pt higher) I guess there's some...
We can all work together here :) Greed applied in efficient, competetive markets, is what leads to wealth creation, capital formation, price...
$0.02 max loss per stop cycle? That's less than the B/A spread on some stocks...You're really just taking vol exposure here, higher vol = more...
And what do you do if it picks your STOP order, then reverses? You will get whipsawed to death with this strategy, since you constantly have to...
since she's not an institution i take it she has no need for an officially audited track record..but her story is all over google & in the videos...
But she doesnt trade Fx, nor does she martingale....so none of this is relevant....she trades short vol and does well for herself, i dont see...
How is she martingaling? She has already been through numerous bear markets and is still alive.... If she was a bad trader she wouldnt be able to...
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