trading VEGA

Discussion in 'Options' started by jenek-cowboy, Oct 16, 2007.

  1. This not secret that trading by IV differs from trade stocks. I want to hear as this is done in DJ and other markets. In Russia we no have index IV(we have no history by it. If happens to collect it's myself) and accordingly we can't come to a conclusion how to trade IVO.
     
  2. MTE

    MTE

    The principles of volatility trading are the same regardless of whether you have an IV index or not.
     
  3. Have to not agree. For example, if we nave got a signal for long(channel breakout) the price with what that probability will above. But we can't say the same for volatility
     
  4. i want to found only statistical reliable results
     
  5. MTE

    MTE

    I didn't say that the principles of trading price and volatility are the same! I said that the principles of trading volatility in any market are the same. In other words, the way you trade volatility in the US market is the same way you trade the volatility in the Russian market, assuming the Russian market exhibits the same general behaviour as the US market.
     
  6. cvds16

    cvds16

    the question is do you have options in russia
    without options you can't trade vega
    you don't however need an vol-index to trade vega of options
     
  7. MTE

    MTE

    Sure they do!
     
  8. in Russia we trade only Indexex RTS option. this very liquid instrument. But we want to hear that principles which follow another trader from over world that check and use if at Russian market. But we have no ideas for buying-selling stradl or strangle with out analisys the IVO.
    From Russia with Love
     
  9. There is a liquid option on GAZPROM and RAO EES
     
  10. cvds16

    cvds16

    you better start to read a hell of a lot
    start with Sheldon Natenberg: option volatility and market making
    read mcmillan: options as a strategic investment
    read also Jan Baird: option market making
     
    #10     Oct 16, 2007