Recent content by jordanwrong

@destriero can I find you on other forums as well? But if your trading Netflix vol you would also need a lot of edge. I'm sure there would be a few money managers/ retail who would love to sell me some cheap calls on NBBO. Or cheap insurance. In AAPL that would be arbed away so fast.

It seems everyone here doesn't trade them and the open interest proves that no one trades them. If no one is trading them then how the hell can they be efficient (reflect all participants ideas). I understand the bid ask is insane. Thanks for sharing your idea ERROR Correction

Looking at a stock that let's say trades 500k-1MM of stock a day. The option market will be pretty illiquid. This illiquidity should keep many big players out. So my question is who are making these markets and would they be less efficient?

Could you break this down a bit? What's an example of arbitaging skew? And when you say vol discount is debatable without hedging...are you saying if you don't hedge you dont have a way to see if you realized it or not?

When looking at the greeks I am long gamma long vega short theta. Considering my theory is vol will increase, I want to be long vega and gamma. So should i only be concerned with managing my deltas?

Yes it was a paper trade, I am practicing my delta hedging. The bid and ask was a lot wider in the morning and ToS filled me at 1.40. Showing a nice profit now LOL. But in general If I think the fair value of the contract is $4. should i delta hedge until i hit that $4 mark and then close the...

Today I put on a trade on PCH Bought the 50,55 Aug strangle for 1.40. Reasoning for trade: 1) 3 month Implied vol is currently 14% cheaper than 3 month realized vol. 2) 3 month Implied vol is also in the 3rd percentile. 3) Stock is heavily correlated with lumber. Lumber Term structure is...

Yea I agree, people think the higher order greeks are useless. Gamma is a higher order greek and it is very very powerful. With R or matlab you can code a method to see the greeks move real time. Excel does this as well. Im with IB and they provide real time data to excel. I am sure ToS could...

I have used the CFDs before they are really great but you have still have the downside risk. Mav if you look at FTR (frontier communications), it is evident that the stock will either be a lot higher or bankrupt in 2 years from now. The 12 strike Jan 2020 calls are trading for $1.10. Or would a...

That's not what i meant, what i mean is can i find other alternatives such as, warrants, cfds, or whatever else there is. Or sell OTM call on a similar company to finance the call on the prospect.

Cornwall Capital is known for buying options on undervalued companies that have some sort of bi-modal distribution. Does anyone know of another hedge fund that does similar? Also Cornwall was able to find cheaper methods to put on a trade using OTC derivatives. If I think company x will go up...

So for example last summer when home capital (hcg.to) got screwed for over leveraging, the stock went from $30 to $4 a share. If we would look 2 years into the future, the stock would either be 0 or it would recover. Even tho implied vol was high, the 2 year DOTM options don't have that much...