Recent content by DB Trades

Well s/he could roll the position for a $0.60-0.70 credit or close it out for a $1.40 loss. Personally I would roll it, but I would have probably also gone in naked with a small number of contracts and treated it as a way to initiate a position.

I don't mind it. I think if you are short puts in enough stocks it helps diversify the company-specific risk. The vol on an index vs. its components also changes, so this is the kind of trade that could work out much better in some index / markets than in others. Ideally, you would run some...

Ack! I just want to be clear that DTB and I are not the same poster. My only recent post in this thread was the Liz and Jenny response, which I posted because 1. I am genuinely excited about it, and 2. I felt like bringing in some levity at my own expense Personally, Bobby, I am looking...

I am reading all of this and I am just like....I tweeted Liz and Jenny today and they read my tweet on air yaaaasss!

Yes, definitely makes sense. My issue is that I have a number of different strategies going on, and sometimes I don't really want to get short delta. Just trying to explore other ways to hedge the vega risk.

I think I get this but just want to make sure I am tracking. By term structure being rich, you mean that near-term vol is much lower then longer-term vol, correct? Which is why it's tough to find an attractive setup in the current market. Fortunately I am with you on the small trade size. Tough...

I like the long calls as those are cheap right now. I am trying to get long some longer dated options that have Vega exposure as cheaply as possible, but the setup is tough as volatility is often higher once you get out farther than 60 days in this environment. I typically toss in some VIX...

Yuck on FIZZ. I'll definitely stay out for now. On PEP, agree that I would much rather be long PEP than KO. It is a good company. But I'd rather go long around 90 or maybe 95. Right now I don't see it gaping up (outside of earnings, which is why I am flat now) given the markets concerns about...

Using this strategy (or more generally if a portfolio is short vega), what's the cheapest way to hedge? Buying VIX calls, /VX, going long VXX/UVXY are all pretty expensive.

Well he also scalps which significantly contributes to the trade count.

It means I need to close out of some of my way too big XOM position.

With transparent pricing based on trade volume. Well maybe I just need to switch brokers then ;)

I know nothing about this topic other than to say you have little to lose asking. I know in the US I was only successful after spending some time actively trading. Side note. I have always been curious how much money you need to have / how much you need to trade to get deep discounts. I have...

I have played PEP to the short side twice this summer and it worked out. FIZZ and TWLO are a bit illiquid. I'd have to have a lot of conviction on those to get in. That being said, if FIZZ gets much lower....so many of the CPG/beverage players have great balance sheets and might be willing to...

And bought back for a nickle.