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    Risk Reversal Trading + Currency Hedge

    Is anyone here doing it? Idea is to position in a risk reversal on equities (for instance on down side, buy put and sell call at different strikes) and to hedge with currencies. The reason for currencies as hedge is that they move but yet not too volatile while one is watching. Also cost of...
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    asking about buy options ITM and OTM in earnings play

    Are you sure? I think the reason is that gamma of OTM is lower than gamma of ATM (max gamma). If stock moves towards OTM, gamma of OTM rises and gamma of ATM declines, which makes the percent gain of OTM higher than percent of ATM. Notice that percent gain of both ATM and OTM is greater than...
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    why people hedge?

    To reduce risk without decreasing return, instead of reducing risk AND return. There are other reasons. Also not every hedge does what the hedger wants to do. Zero correlation is useful.
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    Is Capitalism Doomed? How to Fix It?

    That is what countries like Germany are rooting for in IMF using SDRs. There is another solution: increase immigration to western countries to increase consumption and tax receipts. Average joe does not understand that immigration can actually be a great thing for a country, particularly...
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    Dow Jones up 200 on Monday! U.S. gets China to act on elevated Yuan!

    Chinese stock market down, and US bonds down if chinese are telling the truth! Why do you think US stocks will rise?
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    SPY May Not Find Buyer Next Week

    There is no guarantee that the chinese will do what they say, in the manner they say it. I will believe what the market will do, and not what the chinese say. What is significant is their statement because it is the first time they make it public. I would not be surprised that they already did...
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    World military spending in 2009 = $1.53 trillion. USA share = 43%

    What do you call the opposite of truth when what is stated is known to be untrue by the author of the statement?
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    SPY May Not Find Buyer Next Week

    Bonds would tank if this policy would be implemented. Also, chinese stocks might register a big drop on Monday--- the type of drops Shortie likes. How to play a short side on chinese stock market? In asian futures that correlate to china (like HongKong?)?
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    An Edge?

    why?
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    SPY May Not Find Buyer Next Week

    Chinese to increase their currency vs. dollar. Bearish or bullish? I would say down.
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    Turkey taken to the woodshed!

    Read the list of items on which ban is planned to be lifted. If an item is on the list, it means it was banned before. Even paper has been banned. Kids use paper to play, learn to write, etc. There are some monsters committing real crimes. I do not understand how a human can think of such things.
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    Turkey taken to the woodshed!

    Why there was a ban on toys? Is it that the criminals in Israel think of kids as future resistance fighters instead of kids? I would not be surprised if criminal israel zionism come along with a defense like: "...a grown resistance fighter was once a kid, and therefore fighting kids is normal...
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    Turkey taken to the woodshed!

    that is not good news for america's workers who make their living building F-35 planes. It is unfair that americans have to pay for consequences of crimes committed by Israel on peace activists in international waters. A 19-year old american was among those murdered by Israel. The guardian...
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    World military spending in 2009 = $1.53 trillion. USA share = 43%

    Israel's case (which does appear in the list) is worse than all those bigger countries (Japan, S korean, Europe): It siphons money, prestige, brings mainly trouble, offers no return on investment while other countries send business deals/money/etc, and it even has the guts to spy on the US!
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    An Edge?

    That is correct (but only for the market as whole, not for individual stocks). I believe that implied volatility behavior across strikes and times is self-inconsistent, and it would favor the seller of ITM calls.
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    SPY May Not Find Buyer Next Week

    LOL! Now we know a reason why some work as security guards at walmart! Both eyes on the buns, and none working. :p Are you saying the market is fat and ready to fall by its wait?
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    An Edge?

    ?
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    Official closing price at expiration?

    I thought he would get automatically assigned because it is 1c in the money.
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    An Edge?

    Are you sure? The average is an unbiased estimator of the expected value, and the long term average tends towards the expected value.
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    An Edge?

    Masturbation expertise displaying itself (in public and with no shame) ! :) Did I not tell you in the previous post to look somewhere else if you are looking for something else?
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