What to do about potential risk when we trade spx short options

Discussion in 'Options' started by curiosity, Oct 7, 2024.

  1. taowave

    taowave

    Not at a conputer,but wouldn't he have to be short ginormous size to acheive 20 percent??

    Can't see how he could hold tge position on a 15 percent plus hiccup

     
    #31     Oct 8, 2024
    nbbo and poopy like this.
  2. poopy

    poopy

    Much.
     
    #32     Oct 8, 2024
  3. poopy

    poopy

    No way. Neither the calendar nor the ps is going to help his haircut.
     
    #33     Oct 8, 2024
  4. poopy

    poopy


    Rolling 100 lot at $70K revenue/quarter. $280K at this vol-line. Nothing he's doing is going to have an impact on RegT, but improve PM a bit. His volga is so high that even under PM it's not going to be much of an improvement.

    Let's say $3MM a quarter in req. 10% drop and he'll need $4.5MM to carry it or compensate with hedge gains lol.
     
    #34     Oct 8, 2024
  5. Can you tell me how do you achieve this?
     
    #35     Oct 8, 2024
  6. poopy

    poopy

    Cool story, Bro.

    If you're smart (wrong answer) you'll do what I stated and use the short single to make the Dec/Jan calendar revenue neutral. It's still degen but less r*tarded.
     
    #36     Oct 8, 2024
  7. poopy

    poopy

    Search the forums.
     
    #37     Oct 8, 2024
  8. I lived through difficult times (aug 2015, feb 2018, dec 2018, feb/march 2020) and never had margin problems. I do manage my account on hourly base in these periods. I know what i am doing because its all backtested with my own software...
     
    #38     Oct 8, 2024
  9. poopy

    poopy


    What good is monitoring your greeks if we open 15% lower after a halt? Please, stop mentioning your back-tests.

    Test 2007-2009.
     
    #39     Oct 8, 2024
  10. Please give me a period where this happened?
     
    #40     Oct 8, 2024