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An 80 handle range could easily have been 100 or 120 or 150, that's kind of the point. If Soc Gen or Paribas collapsed last week do you think a $5k margin would have been sufficient? It wasn't arbitrary, it was in response to market conditions, to protect everyone involved. As to whether...

Can you blame them when we've had 80+ handle ranges in ES lately? I mean, do you really need 12-to-1 leverage in this kind of market? Seems like a recipe for disaster for a lot of retail accounts, especially with this collective race between firms for the lowest intra-day margins. Personally I...

As a hypothetical, let's say OP decided to leg-out of the spread by selling the long-call but didn't have the margin for the short call. Would the broker reject the sell order or would they fill it and issue a margin call \ liquidate the short @ the offer? If it's the latter, the account...

Agree, to an extent. These trades are all over-extended but I think after some carnage the long-term trends may continue. I sold all my CHF last week(unfortunately before that huge last spike up); have sold about 40% of my longterm gold holdings and the remaining is hedged into Sep which I...

not trying to be snarky or anything but I'm curious why, if you didn't like the trade, you stuck with it?

Dashed Hope

I'm assuming all your capital was used to put on the spread? That's your first problem. It is strange but my guess is your brokers risk controls treat the legs seperately and price off of the bid on the long call and ask on the short call. When the spreads blew out it assumed closing the...

This 47.50-50 area has been big the last couple of days. btw, I'm expecting a rally solely because I closed out my put-spread :) I use mostly constant tic charts so volume is kind of baked in.

Problem is, by the time you see the volume it's usually too late. :(

closed this out at break-even, not worth the stress. great example of not counting chickens before they hatch.

From the original article: It looked like a hedge trying to offset a particular duration. Either way this last article is a joke.

wait, wasn't this covered already in another thread titled 'armageddon trade' or something like that? I believe those were sells(probably hedges,) looking for a rise in rates. So that trade is down big.

not only good trading today, but some impressive detective work

It ain't easy. Depending on when/where/what you were selling consider yourself lucky you didnt get filled on those.

Finished trading around .35 for + .34, now I have to decide whether to close it out on an early rally tomorrow or let it ride into exp and deal with that stress.

what, you didnt get 1174? Nice trade. what a day, look at what the Russel did in the last 30 min !

FOMC @ 2:15 est. Be careful, the fed has made it clear they want higher stock prices so I wouldn't rule out some new language intended to pop the market. Whether it works or not is another story.

Anyone think the FOMC hints at QE3 tomorrow? Maybe cut rates on reserves held at the fed? Or just change the language a bit? btw, we also have a bunch of econ data from China tonight around 10est, so be careful.

It's funny: when volatility decreases and the market grinds up it's HFTers fault, when volatility increases and the markets tank its HFTers fualt. Up, HFTers fault; Down, HFTers fualt; Flat HFTers fualt. No fill, HFTers fualt; bad fill, HFTers fault. Tight spread, HFTers fault; Lose spread...

filled @ .69, now the bottom is sure to fall out:)