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Here is a portfolio I mocked up using ETFs only.... Fixed Income Agrerate, includes Mort Backed AGG Short-term SHY Mid-term IEF Long-term TLT Corporate LQD Inflation protected TIP Equities S&P 500 SPY Mid-Cap MDY Smalll Cap Value IJS Small Cap Growth IJT Foreign Equities...

Can anyone explain what exactly in terms of assets is held in the equity portion of a CDO. I get that it is the lowest most likely to default tranche. But what exactly is transpiring when a default occurs on the equity portion? I assume it is not like owning private equity. :)

I am almost afraid to ask, but what is the equity section of a CDO composed of? and A CDX is a future contract with no expiration correct? :)

This may be off topic but why aren't CFD allowed in the US?? :)

NASDAQ is providing general guidance on when transactions may be deemed erroneous under Rule 11890 . This guidance is not a mandate of the rule but is information on how NASDAQ generally applies the terms of the rule (at NASDAQ’s discretion) to determine whether an execution is clearly...

Thanks again... That does make sense. :)

I appreciate the response. Could you show a brief example of what you mean? :)

In order to protect some gains in some small cap mutual funds I was thinking of hedging these with the Russell 2000 or IJT and IJS options. How can I make sure this cross hedge is as close to dollar for dollar as possible? :)

Excessive government Excessive government jobs (Synthetic Wellfare) Excessive wellfare: Encouraging a wellfare dependant community by always increasing payments for unwanted behavior. (If confused please see Pavlov's Dogs) Willingness to suspend common sense at the risk of offending...

This sort of thing happens every day at brokerages. Make sure you note the time you called and whom you spoke with every time somone statuses an order for you. Never let them off the phone without telling you it is "filled" or "out". Otherwise they will try and stick it to you. Many times...

Are there any good firms to work for in the LA area? Buy-side, sell-side, specialist or otherwise? :)

Cheney & Rumsfeld 08!! :)

I think this is the heart of the argument combined with the much higher net Theta. This is a good explainer for the layman. It is just "faux vega." :)

I really want to see how fast (forgive me for this) and how furious volatility has to change to make the OTM options with a higher net vega more attractive than the ATM options. :)

Thanks for the replies... I was wondering if anyone had advice for running options though a Monte Carlo analysis. I now it is an open-ended question but I am new to the Monte Carlo tools. I realize it is different for non-linear items. Is there anything I have to include or exclude? :)

BTW... Thanks for your thoughts.... I always appreciate it when other take the time to help! :)

Yes, you are correct I forgot to think of Theta in "net" terms as well... It occured to me just after I hit post.... But if you didn't care about time decay and you just wanted to maximize profits from a changing volatility then would the Net Vega would be correct? How would you weigh...

The ATM have a Theta of .81 The OTM have a Theta of .146 Which makes sense the closer to the ATM the greater the Theta, right? Lower Theta would be better if I am waiting for Volatility to move. :)

Whenever I wanted to play a change in Vega in the past I have looked at the ATM options with a far off expiration. But if someone wanted to profit from a a $1000 dollar investment in a change in the volatility (lets say an increase) would they be better off buying out-of-the-money options...

There was a suspicious trade in ADRX '07 options. Someone put on the 20/30 call spread (1 x 3), then news came out of a cash buyout at $25 and not they have closed the position out 4000/12000 times. How does this not trigger a compliance review is anyone home at the SEC? :)