Crude options plays, anyone?

Discussion in 'Options' started by xandman, Nov 24, 2016.

  1. CBC

    CBC

    Ha, yea. We should become market makers. Sounds all to easy for them.
     
    #11     Nov 30, 2016
  2. xandman

    xandman

    I wouldn't think so. I hear about business margin contraction all the time. Never an easy spot to be in regardless of business.

    Of course, I could be delivering pizza. But, my current fantasy is to own a dry cleaning business.
     
    #12     Nov 30, 2016
  3. JackRab

    JackRab

    You widen the quotes a bit... activate auto-hedge... or not and play around a bit. MM's have already idea's about what would roughly happen to IV when something might happen. You have to adjust vols quickly and hedge delta's and trade in/out of vega. Sounds easier than it is, but when you're on top of it it's not too bad.

    I was MM during GFC in bank stock options... now that was fucked up. IV up and down 20, 30, 40 points. Vols of 150+...

    But you adjust and get on with it.
     
    #13     Nov 30, 2016
    xandman likes this.
  4. CBC

    CBC

    I've read a few stories about market makers on bloomberg.

    From what I've read, jump trading makes quite a lot of cash from it. + a few others.

    Thanks for your thoughts jackrab.

    See how the next few days go to tell if CL opt is tradeable for buyers.
     
    #14     Dec 1, 2016