LOL. Right, and the borrow on the shares is like 40-200%/year. And the combo-swap has no switch-risk at all, Bro. Just watch the monies roll-in on the calendar risk. Why don't you short AMZN vola in the reporting month and buy it in the backs? Sounds risk-free to me.
Ai.... I think you're missing the point high-flyer... Where did I say it didn't have risk? That's my whole point... there's more risk than you would think... especially if you'r just looking at a theta number... But okay, you think your dick is bigger than mine... The borrow on shares... whahaa... you can just about construct that +g/+th in any product, incl index options. Doesn't have anything to do with borrow rates...
You're an idiot. The risk-reversal is a risk-position. You need to short the shares to hedge the thing. Ask your mom WHY the thing is expressing so much edge... or I will give you a hint... the edge is equal to the implied BORROWING COSTS on the short shares. Wow. Magic.
Yeah.... right... so by that count there's hardly any skew when borrowing rates are low? And you can offset that risk reversal by another one... still get +g/-th... Next thing you're telling me a short risk-rev is bullish....
Oh rly? You can offset the bull R/R with a bear one? Wow, that's fvcking incredible!1 You mean... a box?! lol dude. I thank you for the comedy.
No since that wouldn't give you any theta or gamma now would it... Anyway, move on dude... don't try to start a pissing contest... Back on topic, I was merely pointing out to the OP that just looking at one figure doesn't say anything... which is actually a point that you agree with me. So suck it up...
The theta gives you a dollar-denominated risk of LOCAL gamma. I never mentioned otherwise and I could not agree with you less. And NO, you cannot cover the R/R risk with a opposing R/R as you'd be an edge-payer.
O... I thought you mentioned something about your friends running big books and looking at that number as their main risk metric... My bad... I assume they are all just running front month books then? And on one single underlying and not a portfolio of several stocks/indices?