Option replication and exotics journal

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

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  1. Prevail

    Prevail Guest

    Looks like the Nikkei almost hit the lower barrier of the last double no touch. 'Glad that one is done with.
     
    #681     Jan 18, 2006
  2. Me too!

    Buying ES here at 128325 -- new long position. I'll cover the GOOG 600C/share position tomorrow.
     
    #682     Jan 18, 2006
  3. Prevail

    Prevail Guest

    Okay, my whole account is long es too then :D .

    Going back to our discussion of hedging the double no touch/ic with the underlying, I ran a mechanical test on the $inx going long when > last third friday's close and short when < last third friday's close. The curve was a nice slope downward.

    Now trying to find a solution for a testable way to replicate gamma curvature...
     
    #683     Jan 18, 2006
  4. Covered ES long at 128800 at the close of the day session. I can't make an argument for staying long. I will close the GOOG 600C on tomorrow or Monday. Short the GOOG Feb weak-synth straddle 530C position as well.
     
    #684     Jan 19, 2006
  5. Sold the GOOG Feb 370/460 outside strangle at 59% avg vol and $21.20 premium, opening position. It's been very difficult to get spread/combo fills on ISE and intermarket today. Be careful in this volatility.
     
    #685     Jan 20, 2006
  6. Sold 50 ES at 127100; 20 for GOOG hedge, the rest are purely a spec.
     
    #686     Jan 20, 2006
  7. arl

    arl

    The fills are terrible AND I am not getting quotes on any combo involving both stock and options (buy-write, etc.)
     
    #687     Jan 20, 2006
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    Prevail Guest

    RiskArb, is there anything you can disclose about the 3 trading systems you use? Thanks.
     
    #688     Jan 21, 2006
  9. Two of the three are black boxes in which I buy the output from a statistician in Boston who worked with Prediction Co. for years. He takes a piece of the back-end and trades the output as well. The third is a pattern recognition program running patterns on from 3-10 daily bars. Other than that, it's purely discretionary. I trade intraday on market profile as well.
     
    #689     Jan 21, 2006
  10. How short term is this spec (a day? a week? longer?). I am somewhat surprised, since I haven't seen many of these kinds of positions in your journal.

    In the immediate short term I am not strongly bullish, having sold some itm calls against my core long ES and NQ positions as a hedge. But I am looking to cover those early next week. If the market goes down, those will be otm calls, and there are few things I like less than being short upside gamma.
     
    #690     Jan 21, 2006
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