well,i built up a couple more thoughts on the subject: first,i dont think,that a quarterly dividend of under 1% can "missprise" a real...
that might explain the "paradox".....looks like i might have been wrong(really dont want to surrender,i cannot find an argument against it)...
:D
well....i thought that we stopped arguing about this,but looks like not really........ :D first there are some books, writen by...
OK,let's quit with the arguing and try to make some money.i have something in my head and would like you to tell me what do you think. the...
you are right-my mistake.
the moment with the vertical is if you buy it OTM ,than the underline hits one of the strikes of the spread.till that time they apriciate the...
you just need a IV spike.even if the market doesnt move,but you have a spike,the OTM spread would cost more,depending of the spike....
guys,i doubt that in this forum there are people,how doesnt know that this is a syntetic. but is not a pure one,like a conversion or riversal...
first you are not telling me where are you longs. and then the spread is not DOTM,but more ATM.you can not feel the diference from a IV...
bingo-they trade with the same IV,OK. but as you know OTM time spread has 100% extrinsic,and ITM almost 100% intrinsic,right? so the IV...
i play this all the time.because when the oil fall,it is usually supported with widening the contango between the futures,i order from the pits...
you are taking me for a spin? you kiding? and i would suggest you read up on vertical and vorizontal IV skews.. and what, let say ,a...
is it? why dont you model it,but put different volatility into the model..... even at expiration there might be a difference-at exp. the...
just use a calculator. last week,with the fall of S&P from 1011 to 980 within couple days,volatility rose from 24 to 29,which is 20%. so...
i wasnt talking about currency options,but equity. ussually with a fall you have 90% chance,that IV will rise.why not to use this advantage in...
i dont argue,that they are different....they are the same position. what i was sayng is that they will change a little differently because of...
yes,at first look they are the same.....syntetics......but if you look deeper,there will be for sure a difference....because of the volatility...
dont forget the plunge protection team-it was made because of the 87 crash. the goverment will step in. dont listen to them,that they dont have...
for me,the best and the most inexpensive way to hedge against black swan is far OTM horizontal put spread. lets say ES is 900 and you play it...
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