Commentators are always attributing the recent pullbacks in equities to spikes in fixed income yields. I have to say, I find this correlation hard...
IB gives you 100:1 leverage on fixed income securities less of 6 month or less. But what's the point? The cost of leverage is greater than the yield.
Thank you. I’m just wondering though, doesn’t the put vertical have capped payoff, whereas this so-called zebra formation has an unlimited payoff....
[ATTACH] Not quite the position I assembled yesterday, but today's trade was quite a departure from yesterday's! I noticed that if the short leg...
I agree it is silly to distinguish between synthetically equivalent positions. Although in this case, the dissected position you mention does seem...
I have never tried this. It reminds me of a backspread, except that the short option has lower delta than the 2 long options. I just skimmed the...
I set up the trade with the NBBO as listed on Interactive brokers at the time of the original post. 5.12 was the exact midpoint between the bid...
Straddles can be expensive. They can also be inexpensive and a good store of value. It all just depends on the volatility regime of the moment. I...
I am interested in your views on an idea: Selling straddles on VXZ to finance long straddles on VXX. Currently, the December straddles on VXZ are...
To SunTrader's point above, yes, I'm quibbling about $ signs vs. % signs. It does amount to the same thing in the end. I admitted as much in my...
I've always wanted to ask about this, but it comes down to quibbling over language so it never seemed thread-worthy. Still, I can't resist....
I'm wondering if verticals with long strike at 15 deltas, ratioed to be neutral of gamma, theta, and vega while giving you maximum vomma, meet...
Thank you, to both of the above contributors. Magic and Guru. Helpful insight. A question on some of the Guru's points: Can you list an example...
Could anyone suggest a spread of some kind that acts like the Vix, a trade that is sensitive to volatility alone? My main play is ATM bull put...
Go long what? cyclical sector stocks, energy, infrastructure, industrials? Or just SPX? Or are the Fang stocks destined to come back as a value...
Thank you. Yes, what I was suggesting is clearly just checking off boxes. And the whole matter is largely subjective rather than neatly stipulated...
Thank you for the input. MTM election does strike me as a pretty nice. The wash sale loss rule has cost me $10s of thousands in extra taxes: I...
I'm looking into exactly what it takes to achieve the exalted trader status and unlock the associated tax benefits. If I understand Robert Green...
Thank you, Bone, for the viewpoint. Would you be willing to elaborate a little further? How does the short term interest rate curve relate to the...
Would anyone like to discuss strategies for forming an outlook on the near-term future of the yield curve? There is so much good information on...
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