Destriero's single-name vola journal (riskarb; atticus; et al)

Discussion in 'Journals' started by destriero, Apr 7, 2018.

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  1. truetype

    truetype

    Ranges are larger because of increased news flow, but it should be just as easy to have inside days. Everything scales up.
     
    #51     Apr 10, 2018

  2. Maybe will do an Ocho Cinco VX Journal rather than pollute yours...let me see how badly this one gets trolled first haha.

    But for the record I have the -May/Jun/-Jul VX Fly at -.69 with short ES hedge.
     
    #52     Apr 10, 2018
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  3. destriero

    destriero

    What does scale have to do with an unknown quantity?
     
    #53     Apr 10, 2018
  4. destriero

    destriero

    Out the remainder of Dest1(b) at 32.50, 32.85 mid. Flat.
     
    #54     Apr 10, 2018
  5. destriero

    destriero


    Can you deconstruct it a bit? This is not currently in my wheelhouse.
     
    #55     Apr 10, 2018
  6. My position is VX FLY

    Short May VX

    Long 2x June VX

    SHort July VX

    Net credit of -.69

    Another way to look at it is

    Long June/May calender (+June/-May) at -.58 (credit)
    Short July/June calendar (-Jul/+Jun) at .11 (credit) = Total Credit of -.69

    Expecting June/May to flatten out more in the curve than July/June will (FLY hedges slightly versus outright JUNE/MAY position).

    I am also short ES in a ratio to the FLY because a rapid sell off tank could hurt the FLY a lot in vol spike (June/May switch goes even more negative as May VX spikes up) and I don't trust political events as you say. Only problem now is ES has spiked up and FLY has not melted down yet so ES hedge has net loss in position.

    Looking to close out the FLY at .30 - .35 as APR pulls MAY lower so will hold a few weeks.
     
    #56     Apr 10, 2018
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  7. speedo

    speedo

    You options guys talk sexy :D
     
    #57     Apr 10, 2018
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  8. destriero

    destriero

    I get the structure, was curious as to the ratio of ES. Thanks for the color.
     
    #58     Apr 10, 2018
  9. Yes, was doing it more for those reading along to follow as you detail out the trade.

    I chose a ratio of 1:5, Short 1 ES per 5 FLYs because I was kind of nervous of China/U.S. trade war mega sell offs still occurring. usually I have done ratios closer to 1:8 or 1:10 but was pussy-ish. Bad case scenerio for this is market keeps popping higher and vols stay somewhat elevated :(.
     
    #59     Apr 10, 2018
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  10. destriero

    destriero

    Dest3: Long NDX 6250/6500/7000 231 put fly from 230 actual. Color later when I get back home.
     
    #60     Apr 10, 2018
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