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thats my point. It’s not obvious that kgilroy’s trade idea is bad (contrary to your post). I would say the risk reward favors him.

I talked to a hedge fund manager who runs a 20 billion dollar fund. He said that he had put all his personal wealth in Russian rubles. I was shocked with confusion as I told him that was the opposite of what he should be doing. I’m so smart.

are you that triggered?

Or he takes over Ukraine, sanctions are relieved and Russian stocks rally 50percent.

as a US citizen I don’t think you can open a Swiss account. If you are still trading prop, can you access an equity financing desk to provide you a CFD or a total return swap? You have currency risk, but that’s unavoidable as you will be consuming dollars.

he can also pull out of Ukraine and cut a deal and the entire stock market will be up 50percent. Which is more likely in the next 1 month?

ha. person. Woman. Man. Camera. TV.

A brain full of dementia.

My definition of realized skew is different from sle’s. I would call realized skew as Vega pnl of your two strikes + gamma pnl related to the marking of those strikes. I don’t know what he’s defining there.

my experience has been that if you are short skew you tend to lose ALOT of money when vol goes up. I don’t know how much is from skew steepening vs being short Dgamma/dvega as the whole curve goes up or getting shorter gamma because you’ve moved into your short strike. Or because you are short...

Welcome back NY_HOOD.

the law is likely only for christians which makes it even more snowflake-y

yeah. The kid is Christian. What about if the kid were a Muslim?

there’s no incorrect or correct way to measure it. It’s only tradeable as fixed strike.

the issue with skew is that at the end of the day you are trading fixed strike vol (unless you are trading variance). So the 90-110 today becomes the 100-120 and with that your Vega and gamma profile changes. So you have to make spot vol correlation bets that are tricky. Sometimes the vol resets...

well, diversifying will prevent having all your money in Russia, Ukraine, or second tier US tech names. You will only have some of your money in those investments.

I agree that trading skew is one of the trickiest things to trade in the vol space.

so as the spot is moving around you are calculating sk10 using the current 90-110?

how do you measure realized skew?

as des said once re: weightlifting “somewhere there’s a girl warming up at your max” don’t flex on your trade size.