1x2 put spread strategy

Discussion in 'Options' started by sukikra, Jan 8, 2011.

  1. sle

    sle

    Dude, there are 64 ticks per option handle - futures are quoted in 32nds, options in64ths
     
    #31     Jan 15, 2011
  2. tomk96

    tomk96

    i'm all over hating on CNBC. i must tell the tv to STFU multiple times a day.
     
    #32     Jan 15, 2011
  3. Hahaha, famous last words, these...

    Many things are possible with put (payer) skew in US rates.
     
    #33     Jan 16, 2011
  4. nSa

    nSa

    depending on the deltas this is a short volga position and is dangerous. if IV moves dramatically (in either direction) it can get ugly. you are short options Speed (Dgamma) which is bad. making a habit of this is not a good idea
     
    #34     Feb 11, 2011
  5. thats the truth... everyone who trades them calls 'em 1x2s
     
    #35     Dec 23, 2011
  6. indeed, seen a few guys get banged up on wti 1x2's past coupe months... banks were selling the rich put skew hard
     
    #36     Dec 23, 2011