Recent content by dantes

Yes that is the objective but to do so I would think you need to isolate the volatility exposure. Continuing with the 2 stock example. Lets say you take the position for a $0.4 credit (that is what I get with 3 months to expiry) Then assume we just hold it to expiry and that stock 1 expires at...

I must admit that this caused me to think a bit. Maybe I am wrong but I say this is kind of like being short gamma, you need to hedge your delta but really the best you can hope to loose as little as possible on your hedges. I agree that if realized correlation between the stocks really are 1...

agreed. 4 years is some form of slave contract. makes no sense

I have never heard of a 4 year non-compete unless you are the founder of a firm that you just sold for $100 Million. Are you really sure about this? Have you seen the actual language in the contract? Will they pay you for 4 years if you quit the job?

I am the biggest fan of Jesse L but I don't think I would want to hire him if he was alive today. when you run a trading business, i.e. trade with other peoples money, you need to have structure and some form of accountable method for what you do. Its ok to loose money but you must have a method...

Most hedge funds, trading firms, investment banks and mutual funds will only consider well educated people that have experience from trading in a "corporate setting" (i.e. not with your own money). This has many reasons but basically it boils down to that the methods you use in corporate setting...

Its a delta play with a capped upside and crash protection on the downside. Should be great if we continue to rally.

The whole point of a dispersion trade is to capture the difference in vols between the components and the index. If you go short the component volatility and long the index volatility you are hoping that your gamma on the index will make you more money then what you loose on the components. This...

Yes I see that you are long the index option but this means that you have exposure to correlation between your basket of stocks and the index. I would think you were looking to only have exposure to the correlation between vols?

I would think you need to at least hedge the individual deltas if you looking to be short the dispersion. But maybe I am missing your intention here?

GHCO is a very good firm, so I say you are on the right track. I assume you are in Chicago so there are a large number of good reputable trading firms that hire graduates. But I don't understand what you mean by not sponsoring you? Is this really a job offer?

Great stuff for equity options, does not really work for futures and futures options.

sure you can trade it, but dont you want volatility? look at todays stats for example: http://www.cme.com/trading/dta/del/delayed_quote.html?ProductSymbol=ED&ProductFoiType=FUT&ProductVenue=R&ProductType=itr No movement at all in dec 05

Euros is the price (or rather the interest rate) of a 3 month deposit at the time of expiration. with short time left that interest rate is almost 100% known. With long time it is very unknown, and hence more volatile. Most trading right now is the sep 06 future

Try these guys, they like trading customers and have good direct market access solutions for smallish pros http://www.fip.se/default.asp?lid=1