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Hi guys, great discussion! Re: Parra, so far it feels more stable to be short vega for systemic collection of risk premium vs. short gamma. If gamma was where the real juice is, we should be shorting short-term ATM's and doing the work to hedge risk. But it doesn't feel like we get paid...

Establishing a delta band is pretty straight forward. Still thinking on how to cap vega risk. If we have 100 SPX deltas, a 5% drop is just under $15K of risk. Depending the DTE on our options the IV on could possibly do +10% for shorter dated in the same situation if it happened fast? So...

Options are more "expensive" when their underlying has more volatility. So TSLA calls are more "expensive" because they will go a lot further ITM ($ wise) on a 1SD up-move vs. something like KO. Higher ratio of atm option price : underlying shares doesn't denote a higher expectancy trade...

I wouldn't go so far as to say it's a problem... if you're holding way more than enough in cash. It's just not optimal. In a binary comparison of selling $260 puts vs. a resting order of the same size at $260.. you are right that the former scenario will be superior in PnL at the end of it...

Hey guys, do you have advice on how I should be approaching risk management for vega & gamma? At times I have various positions on of different options and hard deltas. And I have my global SPX delta band that I want to stay in. It's attractive at times to sell more options to hedge instead...

% Returns for the YTD, 1M, and 7D. Small PM account.. trying to add a little more color and manage risk more actively than blind diversified buy & hold. YTD is high from being very long in Q1.. don't have a strategy that can consistently produce like that. Took off a lot of that exposure by...

Hey guys, do you have any feedback on my decision-making for the VIX contango trade suggested earlier? @rallymode , @sle ? I shorted May futures @ 28 days out & a little above 1.5 vs. spot. Closed this morning when it came down to touch spot levels. Hedge ratio seemed to lean a bit toward...

+1 for real estate as an investment vehicle. You get a fairly consistent stream of cash profits for operating the property, increasing equity gains from paying down debt, and over a long enough time frame its likely you’ll capture some decent appreciation. All with very favorable tax...

Dest, did anything change in the past year with the way you trade? Was it just a near perfect run from August until now that's unlikely to be repeated? You've been trading for something like 2 decades it seems. Amassing $2MM over that time is still a really good clip but to go from there to...

I've done some thinking about VIX before.. it's clear that premium can be extracted here, but the optimal way to do so has everything to do with risk control imo. Front month has steeper contango, but it can also spike way harder.. especially when it gets closer and closer to convergence with...

Do you still view bear diagonal as the best tool for a thesis of near/intermediate term price decline? And how do you approach risk management? Like do you allocate certain $ to the trade and let it play out no matter what or do you have indications you look for that something changed / your...

Haven't heard of Magic Mike; I'll need to check it out! Thanks for weighing in.. strategies are more a thought exercise for me to understand skew. In theory if hedging is perfect the PnL from the equity exposure should be identical unless I'm missing something. But choosing to sell under spot...

@TheBigShort , were you able to internalize this discussion and come away with a deeper understanding of skew and its implications by now? I was doing some thinking today and I still don't have a complete intuitive grasp on the smile. Take the following scenario: I have $28,714 (SPY @ 287.14...

Seems like you were thinking of yield only and didn't even consider the return of principal aspect before blurting that statement out. When someone says "bonds will crash 50%".. it's obviously implied that [value of] is being discussed. You come across as a pretty zealous perma-bull. Usually...

Thanks for the reply, this is great info and I will continue to digest it. I think in some ways I already intuitively considered anti-fragility—in the broad sense I’ve thought about how we all have different talents and resources and growth can be explosive if you aggressively lever them and...

That being said, what do you think is the best way for someone who does have a mind for optimization/diversification to transplant some of this growth mindset to end up with a better absolute outcome specifically in the growth phase than someone in the scenario above? You can invest much...

Daal, you may have discussed this before at some point but I just came across your journal. I scanned through a few of your posts though and see that you're very risk-conscious--and also seem to discuss optimization of investments regularly. This question is fairly general, but what are your...

Hi @Handle123 ; when you hedge on purchases like these do you simply buy puts to cap max loss of underlying? Anything you're willing to share on what area of strikes and expiration you focus on for a position like this?

@Kevin Schmit ; @ironchef My first thought was that a Bet-Against-Beta component vs. long SPY isn't quite what I'd consider a classical hedge; it's more that we're swapping away market risk and holding the risk of the spread's oscillations, right? And those can still get pretty wide at times...

It's difficult to give a single answer on why the disparity exists. My 2c is that the spread in risk-adj returns is already generally bounded around the fair value for it. An exact match wouldn't be fitting since having some "leverage" embedded in an instrument instead of managing a short...