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Big buyers of Jun20 WTI 5, 3, and 2 dollar strike puts came in Friday. Someone (maybe a desperate high cost producer or maybe just a crazy speculator) They were paying up (lifting the "hard offer" for these downside strikes. As we approach these ungodly low strikes the selling (from massive...

Not sure, but my opiod dealer who also supplies other stud traders makes a fortune.

Harvesting volatility premium. It works until it doesn't...

No better feeling in the world than when after you "jack" your vols up, you realize you have a boatload of futures/stock to buy while the market is crashing.

"I never will understand that. To trade a market day in and day out waiting for an event, possibly for years, then when that event occurs you are not set up to rip the cover off the f'n ball, and instead spend that day trying to bail your ass out of trouble, when you should be moving into your...

The market has been bouncing off the 2820 level, with vol imploding rallies...so this scenario has been avoided. If paper were to come in and aggressively sell puts to the short gamma positioned trading desks on the way down, then this would alleviate their problem and as you said will "buoy the...

"Curious, as no option can create a 'net' positive or negative gamma position, why do you assume the positive gamma side will be doing nothing?" Good point. But I think the assumption of this chart, which I extracted from a reputable Seeking Alpha contributor, is that a majority of the...

There are massive short gamma positions (by dealer desks) as the SPX approaches the 200 day MA level of around 2800. The negative gamma hedging is going to accelerate as we approach this level. If this level (200 day MA) doesn't hold, it's lights out for the stock market. We could see a >5% gap...

"So third party be vendors upload their algos to Vela or do you work for Vela? This world is getting smaller and smaller. I just had the craziest story, but not sure if it will give away my identity..." Don't work for Vela. I'm an independent trader who was one of the main beta...

Never understood the "don't trade with your emotions" rule-of-thumb. I've always made the most money when I'm pissed off and want to kill somebody.

I've been able to front run a couple of his tweets before the Trump-tweet algos trigger...and most of the moves have been fades after the momentum dries up. Also, a lot of the HFTs are pulling their bid and offers when he's tweeting, so those Trump-tweet algos can really move the market. Anybody...

Fixed Skew:

If and when you land an OMM gig or join a new trading desk you should take a look at the fully automated curve fitting algo that my group and 20+ other OMM desks are currently utilizing to set their Trade Sheets. Here is a snapshot of what it looks like: For a fixed skew: For a floating skew...

If the guy has a big short equity position against this options position, he is going to get murdered on those long vega call spreads on a vol imploding rally where the VIX goes back to 15%. The all-time highs in the SPY are like 302. Not a chance in hell we make new all-time highs this Oct with...

Who the hell gave this guy $5MM in margin to trade with? And how does he make money not having any form of automation...still doing everything manually like they did in the 90's. There's a reason why there are fewer MMs these days. Hard to to capture the bid/ask spread when markets are so tight...

Any idea who the primary market-makers/mass quoters are for the SPX and SPY? I'm referring to the 1st principal MMs who's bid/ask markets everyone else "piggybacks" and joins. The Susquehanna's and Optiver's of the world.

Thank you Baron. That information is both insightful and very helpful. I will try and convince the powers that be this is a great marketing opportunity for their array of products (not just options), an untapped potential customer base. They have some competitors on here who are longtime...

Standardizing the curves according to delta or standard deviation/sigma (standardized moneyness) would likely show that the IVs are more constant across maturities. It just doesn't make sense to compare the same strikes between different maturities without adjusting for the differences in time...

Hi Baron. Before deciding on whether to become a sponsor, my vendor would like to know how many total active members are on Elite Trader. And out of all those members, how many would you say are professional (sophisticated) vs retail ("mom and pop")? Thanks again.

really? that answer should be obvious ir u have never had a consistently prifitable system" As long as it doesn't cannibalize your own trade and eat into your own profits, you can do both. And like I said, you can offer a basic AI deep hedging product to the alpha-hungry public that...