Chuck Norris is selling payers (puts on bonds) - he does not need protection against high rates.... high rates need protection against Chuck Norris!
One of the most liquid OTC derivative markets out there is in the trading of CDS: ChuckNorris Death Swaps. ... It's Friday afternoon, nothing better to do.
I forgot how much fun Chuck Norris stories are. Any you guys have added some creative twists. Good way to end the trading day.
I went into TOS thinkBack and ran "weekly" short strangles for 2008 on IWM. I just picked whatever was first OTM (whatever TOS selected as ATM). I opened a position on Friday and closed it on the next Friday, and opened a new one wherever the market happened to be. No adjustment, just take the hit on losers. Sold 100 each week. I think they used opening prices so most of the time it would be the same as closing at EOD Thursdays. -11450 5850 7200 -6550 -200 7450 3450 4800 -600 22350 6850 2250 -3950 -9050 5500 6400 5100 -6050 4750 150 150 10350 9750 50 -3650 6000 10200 1900 5000 3850 800 5000 4150 1400 2650 -2750 -5850 -37350 -52150 51850 -4750 -6950 15000 -10150 -15900 -17100 5400 15000 10250 7750 ====== 54150 (Note - I am prone to making errors, especially when copying from one field to another, too bad TOS doesn't allow for exporting trades to a spreadsheet.) (Note #2 - As I said on another thread, Nick Leeson killed Brings Bank by selling naked straddles or strangles.)
Common misconception on Nick Leeson. He himself says the naked straddle position isn't that significant; at most, it was the proverbial straw that broke the banks back. I recall his straddle trade was something like +$200 mil that fall, and th Kobe earthquake turned that into a -$200 mil loss. It was primarily his long position in the futures that killed him... Accounting for something like $1.1 billion in losses.
...if you followed astrology you would have known this and other events will be happening, moon is approaching closest to earth in many years, actual date is next sat 20110319....