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Are you just taking a $13 credit and running that against the historical distribution? That will look great, problem is you can't sell that when it's realizing 10vol and it says nothing of what happens going forward.

Lol, this has to be the same person. http://www.elitetrader.com/et/index.php?threads/is-this-trading-strategy-illegal-or-against-some-brokers-policy.293609/

...you are, that's what the initial allocation is.

As you say the max risk is capped. Practically, the trick is timing (as is the case with all long vol). If you don't get a move for 6mths and you lose 50% of the premium, then even if VIX doubles, you're just back to your initial capital. ...the more time passes between inception and when the...

That's wrong and exactly my point. They didn't bet $6B...nobody would invest with them if that was the case. They are providing convexity not available in listed vanillas. That is worthwhile and impressive and people pay for it. It's that simple.

What's most incredible is ET can still find a reason to trash them. Any way you cut it, it's very difficult to make $1B in the timeframe they did. Given their initial risk allocation, it's not easy to come up with a strategy that has enough convexity to make 20% in a couple days without...

...so you're telling me there's a chance!

Not a chance...it takes that long. 2040 by 8:40pm.

That's poetic. Eminem has a song called 25yrs to life - it's about his relationship and love for music. It reminds me of this sentiment...and of what you get if caught trading on inside information.

He's trying to take the following info, say: A = 1 B = 1 C = 1 D = 1 Sum of ABCD = 4 He wants to take the Sum of ABCD = 4 (VIX value) and determine what A,B,C, and D are (SPX vol surface). The problem is ABCD could each equal 1 or A could = 4 and BCD could each equal 0. Presumably, he could...

Agreed, the value of Private Banks is structuring and lending. In most cases it probably doesn't make sense to open a relationship if the goal is to open a trading acct.

Not IB so much as Private Banking. Even then, don't recall they offered much beyond basic structuring. Their business changed after FATCA...not sure how it's evolved in past 3-4yrs. Are you looking to trade through them...that's typically not their strength but if they're offering competitive...

IIRC you can't fill OPG orders in their sim acct.

IMO, the path dependency of these is tricky - if you buy the put spread you're betting on a 5% move down now, not after a 2.5% up move.

When you set risk at 2-10% is that a hard stop and similar question for targets...do you apply hard targets or discretionary exit? Good luck, hope you do it.

Why? Was his remark over the line or in the gutter?

Thought this was interesting. They're offering a year long apprenticeship before entering their graduate program. Open to anyone (no college necessary, and maybe no college required). Strikes me as similar to co-op programs or clerking for traders in the pits back when there were actually...

+1 for your use of accoutrements.

This might be the issue some have with the greeks - that risk graph is a static snapshot of the position, right now. To your point, you would only neutralize delta if you wanted to isolate your vega PL - that's the benefit of shorting 11 AAPL, it removes delta exposure at that point in time...

Seems like other people have more of an issue with his equity swings than he does!