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AAPL Is an easy win here if we don't get another pull back.

"The obvious is never obvious" ~ Jeff Gundlach

It's great business tho. Think about it, you say you worked for a big bank, throw out some "terminology", charge $15,000 a head. 500 people later you are 6 million dollars richer and the newbies who bought the program get hooked on the leverage you get with options. (only 1 trade away from...

do you know him?

https://www.itpm.com/trader-mentoring/raj-malhotra/

I met up with Anton and his crew in Toronto a few months back. The guy is a complete joke. One of his mentors was apparently the head of derivatives at BofA. I asked him a simple option question and buddy had no clue what to say. He is doing the marketing thing right tho. Having people pay for...

The reason I closed out trade was i was -20 deltas and IF I bought 200 SPY I would have only 5 deltas to look forward to to the downside. My vega was depleted and even tho IV is now at 12, I have no vega $ to lookforward to. UGHHHH

I hedged with spy btw

Okay so I put on a 1 contract SPX long straddle (trading small because I want to work on my delta hedging) on Wednesday with the contracts IV at 9.2% for a price of 26.80 and I have closed it out today for a relatively super small gain, almost a scratch. SPX has moved down 40$ From when I put...

If I am shorting the index gamma, am I not shorting the High IV (index vol is usually rich). I see what your saying, but relative to HV im shorting the expensive gamma(SPX) and buying cheap (AVGO). The article concludes the same, if your not a PM who has to Mark to market then hedging at...

Thank you for simplifying that for me!!!! And there is only 1 other poster i know on ET who uses AC for auto correlation..great to see you back on ET!!!! For a non money manager, the article mentions using actual vol to hedge is optimal even tho as you said pnl would be more volatile. Say I buy...

If the Math is fine I don't see why the data matters. This article and strategies are just as applicable in todays markets as they were when the article was written. If you can predict vol better than the market, you will make money. Do you think otherwise?

PHENOMINAL ARTICLE!! Need to update my R code now! However when they talk about hedging at "lower/higher then implied vol". Lets say I buy a straddle and at the time IV is 10%. Tomorrow the stock jumps 10 points and I am long 100 deltas, the IV is 9% and I decide to short 100 deltas of the...

2710 strike

Long the SPX April 23rd straddle for 26.80

In the picture I have posted, I am looking at the skew relative to historical levels. NIKE is in the top percentile. I am getting a little frustrated on how I should take advantage of this. Because I don't want to be naked on the 1x2 spread and if I put on a fly then I am also buying the DOTM...

I see they have had earnings however I still think the IV is low compared to how much it should fluctuate. I use the Parkinson Model for HV and IV seems reasonably low against it.

If your trading options as a directional instrument you wont be happy with the results. If you want to trade options I suggest you understand volatility and how options are priced. Usually before a breakout to new highs for example, a stocks implied vol will go up because people are betting on...

That makes sense. I should do some work on this though because wouldn't low vol mean rising market which would act just like short theta, or at least very similar. And in high vol markets I wouldn't be short gamma or Vega.