Recent content by RedEyeFly

The trick with long gamma is to kill the trade/hedge at extreme moments (or inflection points) on the vol curve or vol environment. It’s not easy, but very possible to make money always being long vol, even in a low vol environment.

Would be good to see 00/01 and 07/08 years, and also to discern this apart from simply having a high beta portfolio.

Probably that their team is comprised of former market makers and floor traders. They understand the proper way to use options as an investment vehicle. There are a lot of educators out there that use options in ways they were never intended to be used - kinda funny actually - for example a guy...

Well, PRC177f.. sounds like you've got it figured out. Good for you. I also recommend Wilmott. They are a London shop that is a frequent resource for industry.

Listen, I know it sounds really smart to go an be self taught. That's fine, and probably a good idea if you're playing with a replaceable amount of money. It's maybe why a lot of new (and generally younger) traders bottom out a few accounts before they gain a sufficient basis for returns. On...

Edge for vol is the same as edge for anything else. Vol edge is within it's own context but still must adhere to normal rules - either it reverts to mean, or it something you want to trade with momentum. The edge for an option trade is how you structure the trade for the vol environment you're...

I would interview a bunch of ex-floor traders too, and they'll probably give you a sense of what you'll be up against. My guess is you don't go the MM route.

I wouldn't play the role of a liquidity provider unless you have an edge providing liquidity.

I think the edge is in the structure of the trade + vol perspective. Some people find it much easier to make forward vol estimations than guessing the forward price of the underlying. Smart traders will work to structure trades to take advantage of dynamic vol (vol goes up when markets crash -...

OptionPit is the best option educator in the busines. I know their team, and they are probably one of the few consultancy firms that employ former market makers from legit firms (group one), and have actually taken new students from scratch to becoming active market makers. Not that market...

Yes much value. There are several parts to strategy building. 1) Merging your trade ideas with fundamental economic laws 2) Merging your strategy building and testing process with a quality scientific process, paper can be very useful here for cross-industry treatments 3) Bounding creativity...

Yes the basis for some of the ETFs is small and so I would need a ton of contracts, probably excluding me from their use unfortunately.

Thanks. I think I'll be in that market, also looking for options on currency futures. Globex seems to have some but my screen is not showing a lot of open interest there.

I'm looking for suggested products and underlyings to trade options on commodity and currency futures. My broker is IB, and so if possible I would like to stay with them and use options that are listed on US exchanges. I want to allocate a couple MM to each underlying and so I want to trade...