Hi, where do you by these calls / puts ? Do you use DTB or do you use Options from ABN Amro, Deutsch Bank etc. ?? I stopped hedging some years ago because my performance suffered over all. I could reduce drawdowns but I was also missing these huge runs I sometimes have when beeing unhedged.
I use DTB. One of the advantages of dynamic hedging "should" be a more performance oriented technique, but it takes a lot of experience to choose the "right" levels. When Jerome Kerviel abused his "trading limits", I had pretty ineffective hedging costs...
Somebody observed scale bid orders in FDAX at 4719, 4718, 4717, 4716 each 150 lots ? Seems some big stops out there...
Timing is very difficult in the last weeks and month. A lot of overshooting price ranges. Difficult to determine an established "trend" from stop-fishing...
maybe you noticed that Dax did not care. I see bigger problems for Dax coming from the strong Euro. We will see a devaluation competition fired and started by the FED. IF EZB is not fast enough in response Euro could get to strong...
That´s how asset bubbles start...mortgage lenders did not care...commodity buyers did not care...CDO holders did not care... I don´t care, too. I just wait and collect $$$