She is not registered. I think that is the point. why would you pay 2 & 20 to sell wings when you can do it yourself?
Some people have jobs or don't understand how to do it. It's not done randomly by those that are successful at it. 1245
Just curious, when you say selling downside spreads, are you referring to otm put verticals? I am trying to figure out what you mean by rolling it up to the call side. Thanks!
Yes, bull put spreads...if it goes down to my short option in the spread i'll either take the hit or roll it into a bear call spread to the upside, getting enough credit to try and make back losses. if it continues down i'm good, if it goes up and hits my bull call spread I'll roll it to a bull put spread on the downside again. Usually this never happens... I don't let it go ITM, always roll on touch and don't let total losses get more than 100% of the margin on the spread, in which case I'll abandon it and move on. No issues. Basically have access to all mkts in IB (Dax, EOE, FTSE, CAC, nikkei blabla) so distribute the money as much as possible, accross term structure and time as well. The vol risk premia & persistent contango is well documented on nearly all mkts so it's all good. And yes I'm fully aware that global mkts go into heavy correlation on crashes. There's probably plenty of better ways to trade short vol than this, but honestly I'm not good with strctures. I know calendars on index have backvol which can kill you due to nature of term structure & it's roll-down, same issue with diagonals, wide butterflies / straddle is an option but must be deltahedged IMO which I hate because of unpredictable R/R and P&L profiles, naked straddle have too much margin, a complete condor has upside risk which I dont like in indices. Also utilized, ATM ratio calendars (gamma neutral) are cool for hedging vol on spesific maturities, almost like a VIX contract, little gamma/theta change w/ UL change...and of course VIX which I use a lot, I have VIX tick-data back to 2004 and the profit-curve from selling front-month VIX if VIX<1st month and buying if VIX>1st month updated on a 30-minute basis is absolutely amazing. Basically I tried replicating the study posted previously but using intraday updates, which gives a super-nice equity curve. Unsurprisingly, it's sensitive to transaction costs, although it still has good edge. I'm still a noob though and have no formal education in any of this. I rely on historical data like an idiot and try my best to limit risk with my high school math...so I dont trade money I cant afford to lose, if I blew out tomorrow I wouldn't jump out any windows, theres enough for me to fall back on. Like alcohol, cocaine and black tar heroin to drown my sorrows...