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this is what i'm talking about... say trading one child against its parent index.. or constituents of a ETF or index against the etf or index.. so you buy vol in the index and short the vol in the constituents when their has been a vol spike in the constituents .. and vice versa...

OK.obviously I don't know the terminology. Or much else haha

On the research tip as of late ... fucked up.my weekly expiration trade on apple. I'm a pussy... its a buy premium and lose all of it or Make many times it strategy and I traded out of it before it went up 6x the price I bought it at... Read augen trading realities...

Like a vol swap... sell vol in one and buy in another..

How do you set up for diversion. I understand convergence. Short the higher priced security and go long the cheaper one.... its just the opposite for divergence?

Are any of you guys using synthetic positions with options to trade pairs??

A good solid macro sell off and everything will converge. Soon to come! Good and seperated pairs that have good corrolation will perform well in a sell off no?

But I'm good at mucking things up! Jk ok

Love aapl options..... I'm with you with what your saying. But parabolic stocks are great for options trades

i get it.. almost the same.. i like ratios.. perfect volatility trade.. check this out.. <a target='_blank' title='ImageShack - Image And Video Hosting' href='http://imageshack.us/photo/my-images/444/gldbackspread.png/'><img src='http://img444.imageshack.us/img444/5530/gldbackspread.png'...

i'll post the status of the trades in here.. and what i buy and when i sell etc..

yeah.. its worth getting familiar with.. i think i'm actually gonna try one of these trades or a combination of a fly and a ratio backspread.. butterfly in sept and a ratio in oct..

ratio backspread in the options..... don't expose yourself to roll cost/contango without knowing exactly what your cost of doing business is..

Granted soros is more macro economic cycle oriented. And Mandelbrot is applied mathematics...predicting busts has to be the most profitable thing ever.. I'm a noob my fascination with trading started years ago but I've only been actively pursuing it around a year

Your playing the term structure buying futures based etfs. Read the prospectus... your better off spreading directly in the futures per the curve and per your view

Totally agree!

i My parents hate soros I think the guy has sick insight and balls! Reflexivity is to much like mean reversion to me. Mandelbrots fractals is rebellious math and pure goodness... guy was the shit... simple.... his fractal theory as the apply to markets beats soros. Soros is a god...

Plato. The academy. Etc etc. Crap. Schools of thought are shit.

I wrote several papers on the guy... read all of soros books. Both him and taleb are big popper fans. But taleb isn't crazy about soros's attempts at philosophy ie reflexivity... failability is exactly great. I love philosophy. It has everything to do with trading. And behavioral...

2/3rds of all the price action based upon historical volatility will be within one standard deviation.. yes 68% thats just math to consider.... i think your macro Gold trade isn't a bad idea.. all you need is a good run to the upside with a backspread on.. and your in big profit...