delta and vega neutral portfolios with gamma are not exposed to overnight risk at nearly the same level of a naked put position. i could write...
no, it's not. think how that position reacts if there's a gap overnight.
the full risk is obviously not $0. you're taking my words and twisting the message all around. and you have not read my message correctly....
i don't think he's hedging at all. it has nothing to do with what he's doing because he's not doing it yet! but it has everything to what...
risk in options is not defined by how much % capital you put in, but by the greeks that you hold. if you put 100% of your capital into a...
dare you to short a ton of the 45 level calls.
here's a secret: it's not always "fundamentals." :)
yu dee chang's strategies are good, but he's a little more aggressive than others. for a premium collecting-based fund, he sure takes in some...
what implied volatility were those trading at?
many people are intimidated by shorting premium. they have probably been awfully burnt because they had little discipline or demonstrated...
institutions are using variance swaps, and the public retail guys aren't really playing either due to lack of sophistication or...
plug in historical implied volatility
if i knew of no other profitable system for trading, i'd employ a premo-collecting based strategy, and i'd probably make money every year. the...
if you know you won't be getting bought in, you'd do a gazillion reversals. but it doesn't really matter at this point since it should be on...
the synthetic is still at a discount, but you can't secure stock.
http://www.microhedge.com/
taleb is so incredibly overrated. he's an extremist who only sees black and white and refuses to inspect any of the grey. not saying his stuff...
actually, it's more like the opposite. the stronger the rally towards the close, the bigger the profit-taking sell-off. we're not in a bull...
doing that will basically make you long a call spread (or short a put spread) and also short 50 shares. at those prices, if everything goes...
kmg 79.52 May contracts strike: (call, put) 55: ( 23.9-25.1, NB-0.25 ) 60: ( 18.9-20.1, NB-0.25 ) 65: ( 13.9-15, 0.15-0.25 ) 95: (...
Separate names with a comma.