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Thats not really what they are doing, though.

It not going to be 100 yards, not nearly since they have a spread position on. I would say 7ish yards is their max loss - the curve can only go that steep.

From what I hear, they have an IG18-IG9 spread on and given their loss of 2 yards and a steepening of 7 bps over the past month, it shoudl be something like 250mm per basis point... and no, there is no f*cking way they liquidated that position from the moment they went public. There is a lot of...

I would imagine he's not so fat anymore...

It certainly is worth the effort for most, but, as you said yourself, finding trust and cohesion is very hard. The reasons why it's a great model are obvious, to list a few: - diversification for each partner. You get a smoothed-up PL profile based on a number of strategies on a number of...

You want to build your own tools - this will help you acquire an edge by detecting opportunities better. Excel is good, though pretty limited. A statistical programming language plus an SQL database is better for more complex stuff. I, personally, use a combination of R and Excel on top of...

French have invented a lot of great things in life that you can't live without. Like inflatable tyres, blood transfusion and (of course) bras and S&M :)

Well, in general shorting US financials is the right trade. An interesting metric is that European banking stocks are almost at the same levels as in 08, while the US financials are up a fair bit from the bottom.

Banks (as probably all large corporations) have a unique structure where you don't need to be a good professional to become a manager. You have to be liked by the management and to be known as a "producer". To the contrary, in general, good traders don't make it up there because they rarely...

Of course! Thank you!

I was break-even today at the close, the delta paid for a month of theta (this was an amazing slow-motion decline, owning vol was a total waste). I will probably unwind tomorrow morning unless the stock gets slaughtered in which case I'll take some profits and the roll some gains into may OTM puts.

His boss (the CIO) is an all American female superstar and she was going along with this. Stupidity is universal. Remind me what movie this is from? I recall the quote, but can't remember the source. In any case, with the size being what it is, this might be worth a little more, especially...

At the time of reading it felt just like the MS trade circa 2007, you know - the whole "I trade size" aspect, the direct link to the CEO, the conviction and the fact that some very smart funds eagerly took the other side of the trade. To quote a movie character, "when there is a doubt, there is...

Did you short the stock when you originally posted? I bot some Jun 40 puts (naked ref 47 or 45, can't remember) which I am sure will feel great tomorrow...

not sure if 26 vol justifies a nekked sell on BA and it is a 30 delta option 3% away... you can easily blast through your strike, especially if the market gives (the beta of BA is about 1.2, so it's a measly 2.5% move in SPX to your break even)

I am trying to undestand the logic of these trade (the thread caught my attention) and how you come up with the stocks to sell puts on. Do you use some sort of fundamentals screen to select candidates for these trades? When you are making determination of selling X strike/expiry put, do you...

I sell options premium for fun... "the iron condor" sounds soo much like something they sell in a sex shop and at times it feels like it too

yes, clearly these would work in defeating any enemy: We can't find a number x, so the base b raised to the power of x is equal to zero, i.e. for b^x = 0 , x does not exist. So the base b logarithm of zero is not defined.

multiplied by Jacobian :)

actually, was quite insightful..