Recent content by trading1

Hello I am reading an article and the author's theme is that by "taking the gamma out of the trade" the setups work. Any idea what this means? He is talking about trading around big events where the RV soars and he addresses the eventual convergence between RV and IV. What sort of...

Hello Is there any source for afterhours historic stock data? I realise that nasdaq have some data but it is only for the one day. Is there any service that provides historic afterhours data? Thanks for any help

Yes, it all makes perfect sense [thank you]. I'll go back to the options pricing workbook. cdcaveman: Thank you for pointing out the reverse situation when short premium.

Hi, If I hedge a call by being short the underlying (say SPY) and the price falls, I correct the delta by shorting more SPY, then if the price mean reverts surely I am going to lose on my Delta hedging? The new spy trade I got at rock bottom price, the price has gone up and I've lost - is...

Appreciate the informative reply. < enter a risk reversal (sell calls, buy puts)> Whats the cost in terms of premium in this trade? Does the gain from selling the calls negate the cost of the puts? I’m not fond of delta hedging (though suppose I could get used to it) because of the...

Hi, From the point of view of starting a fund what is the most relevant license to hold, series 3 and / or 7, or anything else? Any help or comments appreciated

Hi, What are the best ways of being exposed to downside volatility without paying a high premium for it? I am considering selling calls and using the funds to buy puts. Therefore it ought to be "free" in terms of the premium cost, and I'd lose in a rising (but therefore probably low...

Thank you for the info, a couple of questions: TLT is the same price as it was Nov. last year, has there been no change in yield all that time? I don't understand the Duration aspect, do you mean the 20+ years for TLT? As you describe, its basically a beta factor of x -20, is that right...

I look at the ETFs on offer, like TLT, and it seems that their price is remarkably stable, despite massive changes in the interest rate. It does not seem to reflect the inverse relationship you'd expect from price being the inverse of yield. Perhaps this is because the ETF receives the...