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Hello, Interesting idea but why do it with straddles and strangles? Why not buy jan 50 call, sell june 55 call and june 60 call. That way if stock dives/vol rises it doesn't hurt so much because the short calls become even more OTM. No risk to the downside-isn't it preferable when you sell...

At 1255, what you are doing is buying back two at the money puts (short future+long call=long synthetic put), and making a loss on these 2 puts-unless they are bought back for less than 5.5. You end up with the put vertical 1310-1255, which has made money, but not necessarily enough to cover...

Yawn...good night...

I agree that as a European, it is easier to have that kind of opinion-last time I checked there were no signs of crashing Katiouchas in my garden. (let's not exaggerate about the might of the Hezbollah militia though-not exactly a bloodthirsty army lol). But at the same time Europeans simply...

You're right, maybe they don't give a damn. But I suspect they do. They're isolated enough geographically. Being isolated on the international scene as well sounds like a bad idea. I'm sorry but whatever way you look at it, civilians are being killed by Israel bombs, unless what I saw on the...

It's called guerrilla warfare and it is equivalent to what the Vietcong were doing a few decades ago. It worked then, why wouldn't it work now? If you were one of them, I think you would adopt similar tactics. This is about being smarter than the opponent. Hiding amongst civilians is the...

You might want to check this one out, which is already available : http://www.venturi.fr/langues.php3 Bit more expensive, mind you.

Nuclear warheads don't make sense anymore, as the ennemy cannot be identified as being a state : if a terrorist organisation like Al Q. attacks, where do you hit? Afghanistan? Pakistan? Saudi Arabia? I think you see the problem. It's the same for Israel at the moment : the battlefield is...

Yeah, too much acid apparently; he got completely paranoid as a result; although I've always wondered to what extent drug abuse was a cause of his madness, rather than a catalyst.

lol...:D

Yes, the up or down should in fact be called a double touch (as opposed to double no touch). I didn't mean to say it was exactly equivalent to a chooser, I just wanted to point out that if you like condors, it's the kind of hedge you might want to consider, especially if you have planned out...

Guys, if you want to get an idea of the price of exotics, you can use betonmarkets.com; I use it for paper trades. Barrier ranges is the equivalent of double no-touch, and expiry range is the same but european style. Then there's the interesting "up" or "down" which is probably the closest...

Collars : sell OTM call, buy OTM put. That'll reduce volatility.

OK I'm lost now. :D When you are hedging the barrier with short R-Rs, fine. But now you're long the futures as well...are you hedging the hedges?:confused:

OK I see. One of the major differences though is that with risk-reversals you're paying the spread+commissions whereas with futures you only pay commissions. But I imagine it doesn't really matter that much if your intention is to keep the hedge on until expiration (of the binary) as opposed to...

Let me give it a go. I think the idea is that riskarb needs to hedge a binary whose gamma will increase faster and faster as we approach the barrier (at 1250). Therefore, an appopriate hedge would be one whose gamma will also increase at a very high pace (dgamma) as we approach the barrier. The...

Pucon is ok, but once you've climbed the volcano and done the few other things there are to do there, I reckon it would get a bit boring. It's a bit too touristy as well. If I were you I would go for the coastal areas : Valparaiso and Vina del mar might be a bit too urban for you, but that's...

Good material you got there, segv, thanks. Are there any elitetrader members who have sheep, as a matter of urgency? Thanks.

You're betting on the correlation by doing that. What happens if there is specific (bad) news about the company, which does not affect the rest of the index? I would rather take a basket of stocks with fat premiums and test for the stability of the correlation between the basket and the index...

Hi risk, Glad to see the exotic journal is back, I missed it. :) I wanted to react to what you were saying about barriers being defended. I trade currencies (FX), mainly swing trading but I sometimes make a few intraday trades. One thing I noticed was that there were barriers being...