"Source"? You made money on that fly? Wasn't that an SPX put fly? :S WAIT!!! Were you hedged with the VIX in some ratio??? And with this trade, an amateur looking at that trade would say- you're going against the direction... what am I missing? And btw, what's a "vol-line"?
Source meaning that I used the proceeds to buy the RUT fly. IOW, I am not increasing exposure. It doesn't imply I am at size-limits. No, lost 1.80 on the fly. No hedge. ATM bet on lower spot. vol-line is simply the vol-traded. Diff strikes have diff vols, so to distinguish from a vix-type weighted-avg vol.
This forum keeps rejecting my posts and kicking me back out to log in registration again. Anybody know why? I get on to another forum okay.
How were you able to post this time? When you mean forum, you mean this particular thread or the options forum as a whole which is a "sub-forum" of elite trader forum... of sorts...
As an options trader, I would think it prudent always to be on the hunt for the baby black swan, right?
Precisely because you couldn't anticipate twice the expected move is why it was a black swan. No use hunting cuz if you can see it chances are someone else can too.. To be "long black swan" would be to be long convexity (gamma) and I'd say 9 times out of 10 you'll bleed