What do option traders see?

Discussion in 'Options' started by zdreg, Feb 18, 2020.

Will volatility increase a lot in 2020

Poll closed Apr 28, 2020.
  1. yes

    8 vote(s)
    80.0%
  2. no

    2 vote(s)
    20.0%
  1. ironchef

    ironchef

    Because very few understands convexity.
     
    #11     Feb 19, 2020
  2. traider

    traider

    ES NQ spreads are very difficult to trade based on my backtests unless you do special adjustments. How did you manage it?
     
    #12     Feb 19, 2020
  3. Yeah, nothing like a good ol’ gamma rape and a margin call before weekend.
     
    #13     Feb 19, 2020
    Snuskpelle and tommcginnis like this.
  4. gaussian

    gaussian

    I don't trade near months, and I don't spread indices. That's how :).
     
    #14     Feb 19, 2020
  5. tsfx

    tsfx

    What futures spreads are you trading ? Commodities ?
     
    #15     Feb 19, 2020
  6. traider

    traider

    What do you use for backtesting?
     
    #16     Feb 19, 2020
  7. tommcginnis

    tommcginnis

    Usually, we think of volatility in endogenous terms -- economic potentialities that affect market values. But for 2020, the Real World comes sliding in -- riding the U.S. election cycle with events that (for good or ill) are spun as directly relevant, if not exactly "economic" -- the exogenous events. So, "from within" is our usual view, and "from without" is then Black Swan stuff.

    Well, "exogenous," Black Swan, Real World -- whatevs -- Calendar 2020 will be full of all of it:
    • Endogenous *economy* stuff? Generally calm, cool, steadily growing.
    • Exogenous *non*economy* stuff? Whackadoodle: head-scratching eye-popping vol-popping.

    My opinion only. YMMV. That's what makes a market, after all. :D:p:rolleyes:
     
    #17     Feb 19, 2020
    beginner66 likes this.