Option replication and exotics journal

Discussion in 'Journals' started by riskarb, Jul 14, 2005.

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  1. Long another 40 from 45.50 -- long 80 from 1244.00 avg
     
    #291     Sep 13, 2005
  2. Offset all ES at 1242.00

    Exotics blotter: +$89,000

    Open positions: SPX, DAX, NIK 2x barriers; short 20 Sep DAX futures
     
    #292     Sep 13, 2005
  3. welcome to my world of hedging!

    frustrating as hell, isn't it?

    you've done great with them so far.

    keep it goin'
     
    #293     Sep 13, 2005
  4. Yeah, it really is as I had a good system sell yesterday, but was already short a ton of delta. Good news is that I expect 300k out of the current positions. DAX may be at risk, however.
     
    #294     Sep 13, 2005
  5. Sold 30 Dec ES at 1139.25 into the DAX double barrier. Henceforth I will notate hedge-points as the barriers are traded to avoid the constant hedge-updates.
     
    #295     Sep 13, 2005
  6. Zero-vol on the AM Nikkei session. mark is increasing rapidly on the Nikkei double. A bit suprised we haven't traded below '800.
     
    #296     Sep 13, 2005
  7. EUR/USD hybrid short backspread

    EUR/USD double barrier no touch -- 1.2140//1.2460
    Premium: $41,500
    Payout: $100,000 [includes prem paid]
    Expires: Sep 21, 2005
    Negative edge: $3,200

    Long 3mil of the EUR/USD Sep 21 1.2300 vanilla OTC straddle at 130pips, 8.9%vol, $39,000 debit



    Vols have ramped due to Schroeder's opposition in Germany and the Fed next week. The pop in vols have discounted the 7d debit by >10%. Should have some decent marks in the position before the Fed meets.
     
    #297     Sep 13, 2005
  8. Bought 30 at 39.50; flat ES futures -- remain short 20 Sep DAX from 4907

    Exotics blotter: +$88,600
     
    #298     Sep 14, 2005
  9. Offset DAX futures at 4916.00

    I will not hedge the DAX into expiration. No hedges on remaining barrier to the downside. Potential remains for upside hedging in SPX, but unlikely. Expectation on remaining positions is 6 figures.

    Exotics blotter: +$85,800
     
    #299     Sep 14, 2005
  10. Sold 30 Dec ES at 37.00
     
    #300     Sep 14, 2005
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