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sHouldn't you look at debt my GDP or something.. Japan in that case is the worst.. You have to look at it relative to something otherwise it's not comparable between Nations

Hard to believe... Interest rates go up collateral goes down.... There will be a devaluation... A repricing...

I am libertarian.... Not Republican....

No one should pick tops and bottoms.. But I'll pick this isn't a bottom haha

Some common sense there in any trend the any options strategies that benefit from Delta in the same direction will benefit...

Plenty understand here

Well ya.. I just think there is a threshold in time in which risks change .. Like when vol risk turns mostly to gamma risk .. Because the mean reverting nature of vol and the ever increasing influence of interest rates leaps become cheaper because they closer repsent the long term average of...

Trending is a good way to make money off options... Options typically never have long term trends priced in.... Hence the valve of buying leaps...

The map is not the territory... Sorry I have not had enough time to post my thoughts..... Derman has a model called localized vol that accounts for skew... Because of the lower nominal amount of options otm it is cheap leverage and represents potiential rarer events in the distro of stock...

so your saying because atm options are priced at a lower vol number then otm's it should be easy to to make money off that differential.. ?? It's really really really not that simple.. The otm options are more expensive for good reason, the risk with them is higher.. My next question is find...

in some form most are doing stat arb... be more specific..

beta on stocks... not beta on the market.. and this is purely just speculation.. People buying more baskets would imply that all the constituents would have a higher beta..

but typically the curve is not inverted.. and the Eurodollar contracts farther out in the future are priced lower as a result of the fact that interest rates are higher on the longer term... Lower GE price implies higher interest rate.. I know how the Eurodollar is priced.. 100-interest rate...

sell meat buy wings

I was looking at spread trades on this before.. But it seems just as viable to trade expirations outright with stops

Right.... This is what I was thinking..... So holding a long future is working your way along the curve......converging on par... The yield curve is derived from these futures is why I thought that made sense., you ever trade these Mav?

I've never quite figured out this dynamic.. But every time i look at a GE future.. it looks drifting up.. does this represent the value associated with moving from a longer dated interest rate contract to a shorter term interest rate contract... . I know that It's a future on a spot price of...

this is a pure example of gamma explosion.. it's actually the risk best to be long not short..

I don't think you get what i'm saying.. Yes the gamma is very small on a DOTM weekly.. but the change in gamma is rabid.. It literally becomes unmanageable.. http://investorplace.com/2012/05/options-gamma-risk-visualized/#.VczFBPlVhHw

Your selling gamma collecting thetas... Just a note... Gamma exponentializes near expiration... Convexity to a high degree going against you...I did this kind of thing started out.. I quite before it really hurt me...