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I wonder if Robert Spencer has actually ever been to France. What does he know about the values of these people? I think these people have the classic values of people who are fed up with a system in which they feel (rightly or not, it is not the question) they are left aside. I'm sure that had...

The French authorities are trying to kick their asses and have been humiliating them over the past few years (Sarkozy-the worst thing that ever happened to France). It just makes things worse. What you have to consider is that these people have been parked in these places (suburbs) in the...

Hello Riskarb Good to see the journal is still going on, great stuff. A thought I'd like to share : you are mentioning trading the convexity against the exotic double barrier options. In a previous trade I saw you buy a straddle against a double no-touch, but have you ever considered...

What if AUD/JPY falls to 82.55 (which is I guess the other breakeven level of the strategy)? Close spot position or short another 7d no touch at 83.40?

Of course you can keep a naked option, as long as you have enough money in your account. You just have to keep an eye on the margin requirements.

What you are describing is dynamic hedging. As with any other strategy, you can earn or lose money by doing that. BTW what is your question? If it's : "have I found the perfect strategy?" the answer is no.

The other problem is of course that by covering your call, you are buying it back at a price that won't be zero-except at expiration. So you will lose 1$ on the stock and earn 1$-(price of call) on your call : you end up with a loss anyway.

As I mentioned, it all depends on what you're looking for/interested in... Ranking artists is difficult and IMO doesn't really make sense. Yes-that's what I mean.

OK fair enough. Yes Parisians aren't very nice, even to fellow Frenchmen (especially to southern Frenchmen, who are betrayed by their accent). Italy's great, it's my favourite country in Europe. I don't know if you can say culture is twice as rich though-it really depends on what you're...

Yep I'm afraid most frenchmen are not that kind to foreigners-especially parisians. But Belgians tend to be much nicer actually. The most welcoming europeans IMO are : Belgians, scandinavians in general and Brits. Did you try starting your sentence in French, even basic French? People tend...

Hmm interesting thread, but I'd like to respond to some of Alexandre's comments. Absolutely : getting a job in finance in Paris if you're not an engineer is real hard. The brits (and yanks) are much more open-minded when it comes to diplomas. It's actually called "acquis sociaux". Agreed...

Sounds interesting. Looking forward to that. Is the binary wing barrier going to be a double touch option or two separate touch options? Buying the long binary will not really protect you as well as vanilla wings, as the payoff is fixed, right? What do you mean by "gamma trading...

Hey what's wrong with french brokers? :mad: They have the reputation of having the best financial engineers... Exotics are also available for retail customers at betonmarkets (GB)-currencies and indices.

I've seen you hedging your positions on DAX and forex and quite successfully so. I know your main concern is to hedge the delta of your option position, but you seem to do it "in big lumps", and not by gradually adding to your spot/future position. IOW, it looks like pretty "loose" delta hedging...

Oh, well how about those options that have a fixed payoff that is paid only at expiry if the underlying trades above/below a certain level. Very useful for delta hedging. Whatever they're called :confused:

Yes, I guess the closest way to replicate that would be a short dax future position with a stop loss 15 points above; but even that would not have the same leverage, as there is a deposit required to trade futures. Do you ever trade digitals as well?

OK 1) & 2) OK. But when you buy a k/i put and a k/o call, you have long gamma/vega with the put and short gamma/vega with the call-correct me if I'm wrong. One option offsets the other... Besides, being long put/short call on vanillas is high leverage too. If there is an underlying position...

Hello Riskarb. Can I ask you why you prefer trading exotics rather than vanilla options? I understand the differences between exotics and vanillas but I sometimes fail to see why exotics can be more attractive to trade. For instance with your position on GBP/USD, why trade a k/i put and a...

What makes you think that ATM vol is overpriced? Do you "feel" this or have you got some kind of statistical evidence? In that case, are you suggesting a good strategy would be a short synthetic ATM straddle (short underlying & short 2 puts) with two wings? Yes I quite like fly strategies...

And there are those who know that theoretically no strategy is a winning one on the long run but who would like to know why, so that they have all the elements in hand before determining what type of trading might stick to their personnality/skills and enable them to have an edge. Hence why I...