This is a pretty classic principal-agent issue. Bondholders protect themselves with certain covenants. If a company can issue debt (to pay...
Because it's one the cheapest/easiest ways for Canadians to physically convert USD/CAD. I'd be happy to hear alternatives.
What restrictions? The only restriction I'm aware of for Canadians is no access to portfolio margin.
The brokerages at BMO and RY are the easiest platforms to use for Norbert's Gambit. Purchase the interlisted security in CAD (USD) and sell it...
I tend not to give a lot of consideration to insider sales. Insiders are very long their own stock all the time and when stock grants vest, it's...
Sold October 205 straddle @$22.70. IV up 10% over the past week.
95% of my calendars are with non-index underlyings. I constantly monitor the term structure of a number of underlyings. Eg. AAPL is set up for a...
To clarify on my vega, my portfolio vega is flattened by my long vega calendars. Re: the rest of your post above--I hear what you're saying. I...
I agree with all except B. Like I said a few posts up, one can't protect against everything. But for B, how is my calendar vega flat? It's not a...
Premium sellers also understand the relationship between their deltas and vegas which is why many of them are delta negative. However, I don't...
This past November to February was great.
Why? He's negative delta. If the SPY grinded lower, he would have outperformed the index. One can't outperform a benchmark in all scenarios....
I've been in a similar boat. My main position is short ES and short ATM puts in a 2-to-3 ratio--so a synthetic ratio straddle. Still profitable...
I'm currently long a 105 calendar with the short side expiring this Friday (long Oct 21). I'm liking the downtrend over the past week along with...
Perhaps I should redo my quantum mechanics courses and should have stayed in the world of atom transfer radical polymerization instead of finance....
Please point out the misinformation.
Built into price--not IV. Expanding on my 50 delta option example, an actual 50 delta option has a range of possible values at expiry between 0...
There's also a difference between short /VX and selling premium. It's a chicken an egg thing. Does IV drive option pricing or does option pricing...
But if you add them all up...
This is already built in. If only probability of the outlier were considered (while ignoring the impact of realizing the outlier outcome), a 50...
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