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What do you guys think if I long the emini instead of short the strangle? since it is implicitly short vol!! Anyone done anything like this before? I could also sell the straddles on the emini because of span margin.

so spy trading at 260 I will need roughly $8000 per short contract

30% of the value of the underlying. But I will be using CFD's to hedge which will free up alot of cash

Okay so I have about 5 names where I think the implied vol spread between the spx and underlying's is understating the future vol spread. I will short the atm straddle on spy and long 5 underlyings straddles. The avg difference between spreads is 4%. I was thinking of using $theta to weight...

Rob if I want to for example go long AVGO vol and short spy vol because the spread between them is near all time lows. How should I weight the trade between 2?

I am reading Volatility Trading by sinclair and he mentions in one of his chapters that hedging at realized vol will make p/l noisy but guarantee a profit, while hedging at implied vol will make p/l less noisy but profits uncertain. What does he mean by this? Especially when he says hedging at...

A move to the down side in the index I would rather be long correlation, and long dispersion on the upside. So instead of short the 10D combo on the INDU and long 10D combo on 5 street names as mentioned. What do you think about Long the 10D Index Puts and short street puts and short index...

What exactly is the vol line? If I we look at WMT skew, and my theory was that this will flatten out over the next two weeks, I could buy a 2 or 3 week Put Fly (1x3x2)? However I am short Delta if there is a reversal! Which you are saying I should keep DN. What is the formula to see my $skew

I am reading the thread right now. https://www.elitetrader.com/et/threads/trading-option-pitchforks.244704/ I feel like these guys come up with this stuff on their lunch breaks over at NASA. Regarding the pitchfork, are you delta hedging to try and keep it neutral? Where are some profit...

The Backspread is short vega tho, so if the skew did flatten that would usually be from a drop in IV. So even tho you captured the skew, you lost on vega. Am i missing something?

On my bloomberg terminal I am able to scan for companies that have the highest/lowest skews. After doing some research, it is proven skew is mean reverting. So lets say company XYZ has a high skew in the 99 percentile. How might I trade a butterfly to take advantage of skew coming back down to...

Bond XYZ pays 5% annually 1 Delta Put expiring same time will cost me 1% of total Bond value. Does it make sense to lever up on the bonds and buy enough puts to offset capital lost if XYZ fails to pay? It really acts like a CDO. What are the risks I am taking? IF XYZ cant pay debt they go...

have you seen opportunity in todays markets, where the auto-makers index 3 month implied vol is trading near all time highs but F or GM 3 month vol is trading near lows, or Crude Oil Term structure shows High IV in August but the 6 month vol on XLE is quoting normal levels?

If I look at WMT for example, their beta is .5 but there 1M ATM vol is higher then the SPX. I understand that there is company risk which is why the vol is higher. But it seems to me I would rather be short a basket of low Beta stocks and long the SPX vol. Could you elaborate on why I would do...

Has anyone on this forum tried vol arb with success? For example the apparel industry is showing high implied vol while footlocker has extremely low implied vol. Does this dispersion happen often? Any other examples of doing vol arb?

Does volume cause vol or does vol cause volume?

Term structure of vrx. I will be hedging every 100 deltas, 10x10 contract