Dude. Major Brad Pitt/"Big Short" energy here, laying down the real story to enthusiastic but seriously under-informed newbies. (Yes, it's a compliment. ) I, for one, am seriously grateful for these glimpses into how the pros do it. I may never get a chance to build a trade of that sort myself, but it all gets folded into context for what I do trade. Thank you.
The issue with american style exercise boxes is the early asignment and that's what 1r0nyman did. He put on an insanely leveraged box spread with american style options and POSTED IT ON REDDIT The thread got a lot of attention and most likely one guy who had taken the other side of the trade simply exercised his long call, knowing that this will blow up the position. Since he's retail RH had to handle the position which means that they probably bought back his shorts as a packet and drove up the price so the exerciser could liquidate his long stocks into it. 250.000$ notional in UVXY is not really big but big enough to move the market a little The MM probably didn't even have to hedge delta and bucketed the trade into their global book. For them it was a nice little chuckle, I guess. I mean, when you're stupid enough to post your position in public you shouldn't be puzzled when someone kicks you in the nuts and takes your money. Once @JackMorgan starts to trade real money and keeps posting here, he'll be in for some nasty surprises
The fat man claims $17.46 per share p&l on aapl today. it had a $3 range. and very little vol. lol, they must be using the new math the muppet posts his p&l using this method , no ?
we did take off the 171 short at 166 , nice $5 win . sorry to interrupt your chatter with actual trading ideas
muppet = "I mean, when you're stupid enough to post your position in public you shouldn't be puzzled when someone kicks you in the nuts and takes your money." ahhh, so thats why you never post any trades. you're worried GS will target your 100 shares of that $1 meme stonk
RAES-arb in COMS/PALM spinoff in 2000-2001 (and other tickers). Peak PNL was 1.4 for the day, automated. Putnam at Terranova was making 5-10 on some days in his wife's account.
the palm trade was sick. i had ipo shares of that turd, and got screwed trying to sell at 140. wound up taking much less but still over $100 which was a lot more than the ipo price
I don't know who you're talking to. I'm probably the only one here who doesn't have you on ignore and doesn't block out your bullshit Nice after the fact trade again by the way...you copy those chart pictures from twitter?
I will PayPal you $10K if you can show PNL from a production account on this trade, exceeding $5K in PNL. Send proof to convexx@gmail.com.
i see you give yourself an out that it has to be on 1000 shares. take a hike , clown lets keep the comments to 20 year old trade, shall we this way you dont have any skin in the game