Long-scalping equity options against time decay and market drift

Discussion in 'Journals' started by fullautotrading, Jan 31, 2022.

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  1. Overnight

    Overnight

    Did you just fart in a general direction?
     
    #481     Dec 7, 2022
  2. destriero

    destriero

    About the close vol-arb (at market). Gained $45K on $35K in haircut:

    2022-12-08_8-54-37.png 2022-12-08_8-55-20.png
     
    #482     Dec 8, 2022
  3. destriero

    destriero

    I gave up $8K on the fill by going to the market on the open and now the close, but I stated that I would do so to make it worst-case on microstructure. Netted >$38K on $35K in haircut. Shorted one ES against the position and close it as well.

    Net gain for the week was $38,517.50 on $125K in net liq. I never utilized more than $35K in haircut on vol. I shorted one ES against the position (which was a loser).

    31% return on net liq in four days. I just wanted to show what is possible if you actually have some knowledge and experience in vol. The OP has none.
     
    #483     Dec 8, 2022
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  4. spy

    spy

    You know des, I'm not saying I don't believe you... because I do 100%. But with all due respect, it would really help if you gave precise details of the exact trade and its thesis.

    After all, I'm a covert agent, and I need to bring something back to my clandestine organization. Otherwise... I'm going to be exiled to Siberia!
     
    #484     Dec 8, 2022
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  5. cesfx

    cesfx

    My hat off to your magic.

    If I understood correctly, it was substantially long theta and long vega... Small long delta on low gamma, ES maybe to hedge delta... Very complex stuff lol

    I guess you wouldn't elaborate further on how to get those greeks at inception :D
     
    #485     Dec 8, 2022
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  6. spy

    spy

    Post source code if you can! Lol

    You know, like I do. Hell... you can copy and paste my content directly! We actually have to think about what you're doing and take wild, barely educated, guesses :(
     
    Last edited: Dec 8, 2022
    #486     Dec 8, 2022
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  7. destriero

    destriero


    Yeah, I know it looks nuts, but there are 4-5 guys on here that saw the trade and are privy to it from my TG vol-group. They signed an NDA and it would be self-defeating for any of them to divulge the methodology. I can show more detail on the summary page to show that everything was done at market. Obv it's super low-freq with only two trades for the week.

    It was well timed, no doubt. I only posted it to show how absolutely amateurish it is to promote the OP's put-short method.
     
    #487     Dec 8, 2022
  8. destriero

    destriero

    It's margined as a rates-arb (box/roll/conversion). The only arb with more rho IS a pure rates arb. Under SPAN and TIMS I can add SPX 8-10 lots with no added haircut. At a point the concentration input kicks in and it starts asking for added req.

    I try not to trade these as COB-orders as I don't want ppl mining the book. I once had $100K vega in an SPX trade that required $70K under TIMS.
     
    #488     Dec 8, 2022
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  9. spy

    spy

    :thumbsup:

    No one's questioning your veracity. We're just looking for a "free lunch" ;)

    Seriously... kudos to you! Enjoy the proprietary IP you've created :fistbump:
     
    #489     Dec 8, 2022
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  10. destriero

    destriero

    My last on this thread. Origin of the $39K PNL:

    2022-12-08_11-30-06.png 2022-12-08_11-35-38.png
     
    #490     Dec 8, 2022
    qwerty11 and cesfx like this.
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