take it FWIW, but my otc broker has told me that someone is defending a 4900-strike barrier. Misery loves company.
Dax double barrier[binary k/o range] -- 4795/4945 K/Os Premium: $62,000 EUR Payout: $150,000 EUR [includes prem paid] Expires: Aug 4, 2005 Negative edge: $9,800 EUR Neutrality: 4870 basis DAX cash The vanilla straddle isn't a viable hedge -- will scale into futures into the bull risk above 4910 on cash. Bought 7 FDAX at 4910 avg as initial hedge.
No hedging to report on the DAX position. Everyone seemed to be positioning themselves to be long into the GDP. Dax has just fallen off a cliff intraday, so all looks good for the weekend. The mark on the position is 68kEUR bid, showing a bit of edge after 24h. I'll be looking to enter another long vol-box in listed equity index, but I have to get some sleep; my 18mo was up all night, as was I.
The YM/ER2 short vol-box has widened a bit. I can't stand watching this thing, but I am going to hold it to expiration out of pure-spite. I won't be trading these corrs again.
SOX-sentiment looks indicative of an intraday blow-off. Expecting a bear-reversal in SOX today. Holding the DAX double barrier. No action. SOX -- 48125
Sold the binary at $96,800 this morning at 2:20PDT w/DAX spot at 4920~. Concerned that we'd get one more thrust to the call-barrier. $33k net after hedge... +$5k net on DAX binary positions to date. ET server was down when attempting to post the offset.