SLV Straddled Here

Discussion in 'Options' started by shortie, May 4, 2011.

  1. Unrealized PL in the last several days: -5 > -70 > -54 > +23 > +45 >-52

    back to negative, not surprising given -8% SLV today

    [​IMG]
     
    #61     May 11, 2011
  2. sle

    sle

    Are you hedging your delta or just owning nekked straddles?
     
    #62     May 11, 2011
  3. my hedge is June strangle (lower part on the image)
     
    #63     May 11, 2011
  4. sle

    sle

    sorry, i misread your postions - it appears you are short front gamma and long june strangles a 1:1. Out of curiosity, why did you do them in this ratio?
     
    #64     May 11, 2011
  5. the1

    the1

    This is pretty funny. Margin req's didn't increase due to volatility. They increased because the higher silver goes the more people will flock to it and use it as a currency instead of the paper the Fed hands out. The Fed had everything to do with this.

     
    #65     May 11, 2011
  6. all done by eye, not using any formulas here. basically, i wanted wings far away so that they don't cost too much and at the same time limit my losses to a reasonable amount in case of a large move in SLV.
     
    #66     May 11, 2011
  7. sle

    sle

    What was the exact view you where trying to express?
     
    #67     May 11, 2011
  8. That's just silly...
     
    #68     May 11, 2011
  9. the1

    the1

    Not at all. It's also a measure of inflation and the Fed has to manipulate the markets in the interest of their earlier statement of controled inflation with the exception of the volatile food and energy prices.

     
    #69     May 11, 2011
  10. my bet is that the front month volatility will diminish so i am short May straddle. i expect that June volatility won't be affected as much and my Long straddle does not decay too much.

    i am also betting that SLV will trade ~May strikes around Expr.
     
    #70     May 11, 2011