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The framework under which the ECB operates is somewhat vague. The ECB has described its bond purchases as "monetary policy", which makes it legal. The German lawsuit is disputing that.

I am of the opinion that it's better, but who really knows... That's a terrible analogy. The whole point of the ECB intervening (rather than another political entity, e.g. ESM) is that it does have an infinite supply of muesli and there's nobody allowed to slap anything.

Interestingly enough, this is the response in one of the French newspapers (Libération) to the whole Arnault story. Loosely translates as "Fuck off, you rich bastard"

The original court decision that's expected on the 12th is about the legality of the ESM. The new emergency complaint, to be decided on tomorrow, is related to the ECB bond purchases.

The plot thickens... Gauweiler (a backbench MP) has filed a new Constitutional Court complaint on the back of the ECB decision. Decision expected tomorrow. Hopefully, shouldn't derail the main deliberations the result of which is expected on the 12th.

It isn't known and, in fact, there has been speculation that the decision will be delayed (due to the conflict of interest issue with one of the justices).

A hike? Hasn't the Fed promised that rates will be on hold till late 2014?

I have no idea what the author of your article is trying to do. Tick size is irrelevant (and it doesn't represent 1 basis point change every time). What matters is the contract spec, i.e. the notional and the underlying. The contract spec determines the DV01 of the contract and that's all you...

Tick sizes are irrelevant. Ratio of DV01s is the only thing that matters. Using the Dec Bobl contract, you will get to a ratio of roughly 2.25 (56.5 vs 25). P.S.: I also responded on your other thread.

Tick sizes are irrelevant. Ratio of DV01s is the only thing that matters. Using the Dec Bobl contract, you will get to a ratio of roughly 2.25 (56.5 vs 25).

Yeah, lots and lots of speculation out there regarding CHF... Still clear as mud.

Well, basically, when you buy a fly, you're "pinning" the strike. The market isn't gonna give you the money until the strike is well and truly pinned, i.e. vol completely collapses or you actually expire. That's just based on my personal experience, so take w/pinch of salt.

I respectfully disagree... The mkt can be "grinding up", down or going any which way. Unless I have a decent understanding of what's going on and where "fair value" is, I am not gonna do anything about it just 'cause it's moving in some particular fashion. But that's just me...

That's how flies actually work in the mkt, which should suggest to you that a fly isn't a particularly good way to express a long/short vol view.

Buy a straddle and delta-hedge...

Like newwurld said, this is a rather strange way to be long vol...

This is true more generally, in fact... Once a person decides that propositional logic is a farce, philosophy is a farce, quantum mechanics is a farce etc, then the person's mind is freed up considerably to get a life. Just sayin'...

My pants are firmly on, no worries... The cookies are good. I was always really into the coconut ones, but it's been a long time.

Not at all... It's my way of acknowledging that reality is complicated. At any rate, I guess I'll have to be on my super best behaviour in the unlikely case I ever get invited to Castle Lucrum. I promise I'll be as warm and fuzzy as a girl scout. I'll even bring cookies.

This is actually pretty handy... Pls remind me to use this if I ever get pissed off w/someone and wanna murder them. I just get them to come over to my house, claim they're an intruder and blow them away. I guess there's something good about New Jersey after all :).