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Precisely my dilemma. So how to mitigate this vega risk is my problem. Consider the ff scenario. On nov 25th, 2008 the ESZ8 closes at approx 856. You expect that within the next 7-14 days the ESZ8 will touch either 790 or 965. You are unsure of the direction i.e. will it hit 790 or will...

Thanks, MTE....very much. As a practical matter I find that for the kind of wide ranges I define my risk/reward ratio is very poor e.g risking 50 points to make 5 points with iron condors. Even though there is a very high probability that I will make the 5 points i.e. keep the 5 points...

Thanks just to be clear because people use front/month differently; when you say front month you mean the longer dated option and when you say you back month you mean the shorter dated options. so in Nov 2008, you would mean Buy Jan Options/Sell Dec Options. Correct?

Thanks, are you sure the vega risk is minimal? What happens when implied vol is sufficiently high, say after a recent market fall....then the market subsequently rallied sharply while vols get crushed. In such a scenario you can be right about significant movement but lose money due to vega...

What's the best position/spread to achieve positive gamma but with vega neutrality. In essence, one expects the market to make a good size move but fears that the move may not be accompanied by an increase in volatility, thus making the long straddle/long strangle an unacceptable option since...

Thanks MTE. 1. Is there any particular reason why the wider strangle must be equidistant to the short strangle strikes. 2. What are your thoughts about using a double calendar/strangle swap instead of an iron condor. In the double calendar/strangle swap I would sell the front month...

Hello, How I can replicate using exchange-traded options an expiry range option. an expiry range option is an option that is profitable if at expiry the market settles within the range. This is also done on a limited risk basis..risk limited to the initial debit. Generally if you expect...

WRONG. VERY WRONG

You really think BO is naive? What did he say on the campaign that was so revolutionary? What's the Big Idea of the Obama campaign?

nitro, I'm no Ayn Rand groupie. I also do believe that society & govt has a role to play in providing for the less fortunate - not necessarily via welfare in the guise of Obama "tax credits". I also don't think that society thrives under a socialistic or pseudo -socialistic mindsent...

nitro, I've read many of your posts over the years and respect you. I truly can't believe a trader made the points you made in (3) and (4). I just can't. This is pure emotional analysis --- more of "hope and change"....and emotional analysis and hope are the greatest enemies of a good...

No I won't ask you in two years... the question should be answered now. We vote in politicians on the basis of what our CURRENT assessment of their policies hold for the future. We aren't chooisng a date or a "summer girlfriend"; we are choosing the POTUS. So again I ask "Is this good"...

You truly are a fortunate man, a blessed man. Be sure to Thank God EVERY DAY! A few questions if I may: How long have you been married? How old are you/your wife? Does your wife work? Are you a full-time trader or do you have other sources of income? Just trying to understand...

Is this good? Is this wise? Is this beneficial?

I thought it was for better for worse, for richer for poorer. Aren't those the vows. If women want only the good and get to keep 50-60% of men's financial resources upon divorce and note also that while married women in this era refuse to play their roles as wives, please tell me why should...

Thanks but this is too difficult, time-consuming, expensive and error-prone.

Where can I get EOD data with true electronic close prices for FX, interest rate, metals & energy markets. The FX and Interest Rate markets trade to 5pm EST; however,CSI and all the data vendors I am aware of use the settlement price set by the exchange which is the 3pm closing/settlement...

All listed strikes are available. Use the scroller on the right side of your screen to scroll up/down to view more strikes.

Thanks for sharing this. Very good resource. I wasn't aware of this. Thank you.

What is this "financial grid takedown" you always take about. Honestly, pleas explain. I'm not being difficult - I'm just trying to understand. Thank you.