Get long

Discussion in 'Trading' started by destriero, Dec 20, 2021.

  1. destriero

    destriero

    Yesterday morning I put on a 120 lot skew lock (index) so figure a vega figure of 22K or so. I was short VX outright (no tenors) and long wings. SO yeah, I was long 25K vega across accounts and made 11.3% on my PM account. 5% on my RegT. For the day. I can't show how the peaks resolve or it would be engineered from the pic, but I paid $12K in tail risk to make mid 6 figs (excluding VX risk (not shown)).

    2022-10-04_13-12-26.png
     
    #491     Oct 4, 2022
    ET180 likes this.
  2. destriero

    destriero

    Today's gains on $135K PM haircut/utilization (seminar account): $35K.

    2022-10-04_13-18-37.png
     
    #492     Oct 4, 2022
  3. ET180

    ET180

    Thanks for sharing. What is a skew lock?
     
    #493     Oct 4, 2022
  4. destriero

    destriero


    Something I developed primarily for risk off. The TIMS-haircut is roughly equal to a conversion arb when structured. One of my guys traded a skew lock in his PM account and it actually added buying power.

    $10K index vega requires ~$30K req (defined risk). The trade pictured had a haircut of under $150K and made $35K on the day.
     
    #494     Oct 4, 2022
  5. Overnight

    Overnight

    Are you saying that that is someone's account who attended your seminar and utilized your methods? Damn, that paid for the seminar and then some I reckon'. I assume they already had some knowledge about options before they attended Vegas.
     
    #495     Oct 4, 2022
  6. destriero

    destriero


    That was the trade taken on Monday morning when the seminar began. One day hold. I took the trade as did at least one other (attendee).
     
    #496     Oct 4, 2022
  7. destriero

    destriero

    Seven dudes can corroborate my statements as factual, but ofc they are disincentivized to do so. I am a top-down teacher. Calc this at strike x; trade same at strike y, calc hedge and send. Anyway, NDAs were signed, the seminar is closed and Ima not offering it again.
     
    #497     Oct 4, 2022
  8. Overnight

    Overnight

    I'm not disbelieving you, and I couldn't afford your next seminar if you offered it. I'm just pleased to see that you actually helped people make money. Rare to see these days.
     
    #498     Oct 4, 2022
  9. about the TWTR deal - I see there is still value in some puts...even the ones exp on friday the 47 puts are .50....are there any strategies to capture the premium...just outright selling the 47 puts? any straddles ideas.... graci.
     
    #499     Oct 4, 2022
  10. destriero

    destriero


    Deal is cash and the Nov straddle is trading 3, so it's a done deal. I would sell a strangle instead of puts.
     
    #500     Oct 4, 2022