Recent content by TradeAlone

atticus, short VIX/long SPX is certainly a great trade at present, but isn't the long SPX/SPY's positive vega covering the vol risk on your short VIX future? Gamma is not against you either, why you need short calendar/time fly? thanks BTW, another thought is to combine the short VIX/long...

Right, need to hedge gamma as well, I'm assuming it's part of the option trade already, just thinking if the seller can add VIX future buying to take advantage of cash/future divergence, it makes sense to me Right. And note that most of the time when the VIX trades around 20, the futures...

DMO, I know your thesis about portfolio insurance, and good explanation of vol skew in your other posts. I was arguing about the divergence between VIX cash and VIX future, whoever (option MMs) were selling those equity options to the portfolio managers were taking the risk. They need to hedge...

DMO, sure one may get killed easily by fast moving gamma :) the real question is why people would buy these equity options at such expensive level, given the fact that everyone seems to know the high IV is temporary

Would it be better to short SPY straddle?

Hi, nitro, Doesn't IB provide you direct access to exchanges? Why do you need to get a seat for CBOE or other exchanges? I'm interested in your mass quoter, is this something one can build with IB's API? Any background info for writing this kind of software? Are you able to quote...

Good comments, Mark I doubt shorting equity strangles is a valid strategy, I got burn on 10/31/07 shorting CROX at earning release. Any one using this strategy has been making money consistently for years? Thanks

What kind of rule change?