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What if you hold a house and the market crashes 70%? Better live on the street just in case! What if a car hits you when you walk accross the street? Better move to the middle of the desert, maybe then you can finally be safe from those damned black swans! Life itself is inherintly risky and...

Looking kind of top heavy. Time for a little correction after that steep incline?

Oh. But the .pdf file mentions VXST options....well, this was anti-climatic. No fun (or use) without options.

Well, since Im bored... d c a d...But I didnt learn options in any academic setting so maybe wrong

Not seeing any VXST options in IB, only futures.

Read: http://en.wikipedia.org/wiki/Ripoff http://en.wikipedia.org/wiki/Get-rich-quick_scheme http://en.wikipedia.org/wiki/There_ain%27t_no_such_thing_as_a_free_lunch http://en.wikipedia.org/wiki/Confidence_trick

MBS is still being swapped for reserves that never find their way into the real economy, so no effect on M2. There's what, $1.5-2tn locked up in the banks? Not sure what eventual losses on MBS will be, I've yet to see any charts of MBS mkt value before and after the fed entered the market...

Id trade RVX and OVX if option markets weren't so wide on them

Just a note, QE is not really money printing. Strictly speaking, it involves printing money, but at the same time, something very near money is being withdrawn from the private sector; government debt w/ near maturity. That is essentially indistinguishable from money. So called "private sector...

What about IB, know anything of them? I see IB has the VXST index available at least...

Where did you read this?

Still a bear leg rally?

Another crash to the upside Every correction there's somebody predicting the end of the world, "ES at 1500 in a week" etc. etc. and everytime they are wrong. These markets have nowhere to go but up. The fed and govt is so heavy into markets these day that a 2008-type crash would simply not be...

Guess it depends which exchange it was routed to?

Yes true, and the result from calculating it that way, should be the same as the result from using the above formula, with the final spot price inserted.

Which broker? Any broker without direct pass-through of exchange cancellation fees or with otherwise intransparent, convoluted cancellation policies. MMs dont "pass on orders", however your broker does. The only time your order hits the NBBO is when the OTC MM of the broker-dealer passes on the...

Yes, for an entire position. Not sure I understand you, but the P&L at expiry is simply the above with the final spot price.

Thanks for the heads up, this is very interesting indeed. I for one will be all over this. Wonder if we'll get shorter term ETN/ETFs than the VXX also. VXX with weekly rolling futures, now there's some contango for you!

Options are incredibly complex, but in general your expected pnl with vol and UL movement will be: delta * dS + 0.5 * gamma * dS^2 +vega * dIV - theta * dT I found this is not perfect but it holds most of the time for most combinations If you go deep OTM there are some other things like vanna...

MMs have lot of advantages but also responsibilities, therefore a cost is imposed on potential competitors, so MMs have incentive to uphold those responsibilities at all times. Just look at HFT, anyone can do it and they all become net takers of liquidity on first signs of trouble. In 2008 it...