Recent content by #scrooge

futures are probably the best used product by the industry for hedging. But I uses VIX, collars and puts.

Not oil companies. Stable prices are most important. If a airline edges and for rise in oil prices and prices go down then they are stuck with edge or they unwind it. The unwind process could drive the price backup. But there are 100s of different grades or oil and they all have differing...

Price matters in day trading. But Volume impacts movement more. But here's the thing if alot of traders say ok, if we get above the 8 and 12 and 50 moving average for like 3 days, I taking some off the table. That moves price. So if the trades people make based on "Whatever" plan or algo...

I starting to sell naked calls in VIX on Friday for the following Wednesday expiration. And buying at least 45 days out VIX call spreads. The IV in VIX in the next three or four weeks is much higher than out 45 days. Its a speculative trade.

I'm hedging more using VIX call spreads. Other hedges is long puts in XLF and XLE. I sell puts against the position and roll put at Profit points if any or at 45-32 days. I normally use the 85 or greater Delta put. But recently I've using VIX calls spread with no short put spread involved.

Agree but it wasn't obvious or they spread the put purchases over several brokers.

Its a hedge and one can assume there will be alot of naked puts bought in SPX over the next few days. But it did help set a floor on drop of VIX and VVIX this week. Having said this I took the trade for a hedge and to position myself to sell more premium.

First there isn't any jail time involved. the profits were not fake. I take profits in my trades this week nothing wrong with that if there is a unrealized lost sitting there next week I have to address. Seems pretty good trading to me. Market makers take these types of trades daily.

I don't see anything wrong with using calendars. Of course at some point you have to take the loss. But if you can take a loss on long call in first part of the month and sell calendars later in the month that make the loss positive why not do it. SEC allegations are only valid if one accepts...

That one is not TRue. Going through Tastetrade you can get reduced commissions from TOS. So your comment is just wrong.

Well Fraud has to be proven. I've read through the SEC document. It will only work if the Scheme trades end up being scheme trade. I don't think so. unrealized losses are unrealized.