newwurld. Right now AAPL front month has really low vol against the DJX. The spread is at the lower bound. How can I go about trading this if I...
Like I would have bee happy selling that straddle for 6. So i am a bit confused
Can we break this down a little further? Let me give you a real life example to give it context. Today DXC traded 2,700 options today. It just had...
In liquid underlying's the price of the options before earnings are driven by supply and demand. Let's say a non liquid underlying before...
Robert I have a question for you since you used to make markets. I am trying to buy/sell straddles across earnings and am starting to develop a...
When you say forward vol. Do you mean future implied vol? Because realized vol would hurt a calendar spread
Santa I have been putting alot of thought into your statement vega "gains" must out weigh your gamma "losses". So our vega gains will be...
You are a jewel!!!!!! Life just got that such clearer. Where're you travelling to?
Okay this is what I have come up with for when one should initiate a calendar. Lets say BABA has their earnings in a month and today the implied...
That's all I'm looking for. The thought process on a trade
I understand, but I was wondering if you could give a specific example of when you traded the spread. Did you delta hedge etc...
Thanks for the reply. A spread on implied vol. Ie a dispersion trade, calendar trade etc...
Also thanks a great deal for posting that spread sheet. I will review it in detail when i get on a computer
LOL tom I read it a few times!!!! I was just a bit confused. So let me ask a more specific question about your post. I wish to write next week...
Normal term structure is upward sloping and vol is mean reverting. So when vol spikes and I buy a calendar because the term structure is inverted,...
Do you do any spread trading? Can you give an example of a spread you did recently? Vol wise not direction
Why would someone not care about pricing? Can't you say the same for the less liquid exchange markets as well then?
I'm thinking the real money in options is trading the spreads of vol either within the same asset or cross asset
Leverage = more variance in pnl. Plus I could use stock futures, margin, etc for leverage
Hey everyone, when we look at the correlation between price and vol it is very close to 1. So if I think vol will expand I should also beleive the...
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