There are plenty of carry trades that are delta neutral. ... Of course, then corporate actions & rates try to blow you up.
a lot of us forex traders are going to get burned by not paying attention to rates it use to be a full time job and every basis point meant something now we have become complacent since we have the Ben guarantee I couldn't agree with you more There is a good opportunity out there for a kid who is a student of rates It's a very old profession And the general consensus by those who study it is "They can never be predicted."
Ah, I meant spot vs forward. Cash equities vs futures vs ETFs, & associated basket games. You know, the stuff where the margins are too thin, and the math too simple for vol traders to take an interest.
I hear ya, time to ask that little kid who sits over in the corner and never gets any girls, what he thinks is going to happen
Do you remember your favorite bullish stock? NUS. Jan 45 calls are at 0.75 (more than twice 0.35) Could you find the IV and report it here? Also analyze this paper trade and compare to the other trade: - call, 1/2 size for now.
I sold a $30 put on NUS. I don't recall discussing being bullish on NUS, or any other company I sell puts on. I discussed the stock not dropping below my $30 strike, if support was not held at other tech supported areas. NUS remained well above my strike during it's drop. As I discussed when I first posted the trade, I expected a volatile ride, due to the sector it was in. As the sector was under attack. But my analysis reflected it was a reasonably valued company at my strike and it was financially healthy. That being,.... the stock was "recoverable" if it took a hit. It took a hit.... and it recovered. But during the ride, it never came close to my $30 strike. Why don't you be a good boy, and compare and share it's IV when I initiated the trade to what it is now? Consider it your home work assignment. Present it to the class in the morning. I have no idea what your 45 call has to do with my 30 put.
Two to three trading days later, NUS Jan 45 calls traded at 0.30 (and possibly even below that price). No draw down, and a gain of 0.45, which is about 30% more than the number 0.35. I would not be surprised if PM still considers his trade of shorting the Jan 30 put some weeks ago (which led to a draw down of 500%, and which I understand is still open to hopefully earn 0.35) a better (if not the greatest of all times) trade despite the numbers. He also did not provide the IV. Could it be that he does not know how to the get the IV or that he did not understand the question?
<<< He also did not provide the IV. Could it be that he does not know how to the get the IV or that he did not understand the question? >>> Is it possible you are an idiot, and a hindsite trader? Why don't you go to iviamanidiot.com and get your own info. We all eagerly await your next idiotic comment, question, or observation. Don't keep us waiting. Tick....tick....tick... PS...... http://webcache.googleusercontent.com/search?q=cache:http://ivolatility.com/