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its 40,000, cents per pound so notional is $30k not $3M

counter point on my 3) above: if a company generates huge revenue in surplus of investment opportunities then it make sense to return capital to shareholders, instead of hoarding cash or splashing them somewhere outside of their expertise. maybe in this case div paying is correct decision and...

i had the same question for years which i also posted on this forum before. i still think there's an irrational tendency for some to prefer div paying stocks. they have these illusions: 1) "they're safer" - generally true but thats because stable div paying companies are usually mature...

1. liquidity - make sure it is liquid. different commodities have different liquid months. 2. carry - understand term structures for each market and use it to your advantage ie long months with abnormal backwardation / short contango

You need to buy more far OTM puts than the near term you short (in number of contracts, assume same maturity) to also profit from black swan events, otherwise it's just a spread and the far put just caps your losses. Play around with a maturity date payoff graph to see what option "combos" you...

may i know what strategies you plan to employ for HK eq options and why HK specifically? my focus is also HK and planning to further focus into HK equity options as well.

Yes. Depends. Theta decay is highest for short term options. I believe one should still look for an edge, even when selling covered calls. Such as finding mispriced options or timing. Otherwise it'll just be an -EV asymmetric payout trade with the illusion of being profitable, until a home...

Gamma scalping (periodically resetting to delta neutral) should lower the pnl variance but with hedging costs so over-doing it could be costly. Holding to maturity is the other end of the spectrum with theoretically the highest variance and also EV. There should be a sweet point somewhere in...

I've always failed to understand why high dividend stocks are perceived to be superior, even by professionals. How is a 5% div stock different than 0% div stock where the holder sells 5% of it every year (assume no transaction costs of course, let's also ignore tax because it is prevalent in...

fundamental analysis is not just reading the news. earnings reports, shareholder meetings, industry / product analysis, sales forecast etc. all have substantial depth. more dimensions than OHLC volume etc imo

Thanks quant1, your formulas led me to the below findings. Originally i thought XIV return is: N1 = N0 / (1+r) which gives the below incorrect payouts (in all cases total value always > initial. Using XIV (approximate) return: N1 = N0 - (r * N0) I get below instead. so when VIX is flat after...

Thanks sle, Maybe convexity was a wrong word choice, but what I thinking was the VIX futures can triple in value while losses from XIV is bounded by 0. So in extreme scenarios this should be profitable? Meanwhile in "normal" days the two seem to offset each other quite closely.

XIV Fund Summary The investment seeks to replicate, net of expenses, the inverse of the daily performance of the S&P 500 VIX Short-Term Futures index. The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied...

What are some ways to short bitcoin? Futures are 5 BTC/contract which is way too much for me. I'm looking to short around half a coin. Thanks.

Thanks guys

Hi All, I am new to this forum and also new to trading. Nice meeting you all. Hopefully someone could answer below 3 basic questions! Thanks very much in advance. (I use Interactive Brokers and I am from HK, trying to learn trading slowly knowing it's a life long journey...) 1. Short fee for...