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Excellent indeed! :)

When I said the curve agreed with me it was in reference to the fact that the short end (2/10) lifted nicely after the election. The long end (10/30) also spiked "on election night" and then sold off in the weeks and months to come. Meaning, that the market does believe we are going to see...

Marty, you are making all of my points. As I've pointed out on other threads, yes, the 2/10's are diverging from the 10/30's which is why I'm NOT buying this massive inflation theory. I simply asked you to defend why you seemed to agree with the title of this very thread that "explosion" of...

Friday? LOL. I'm talking about the move the last few months. Come on Marty, my dear friend, clearly the NOB is not going along with this "massive inflation" theory. The yield curve is just not backing this story up. Did the banks come out of a 5 year hibernation? Sure, a little bit. But...

Huh? The banks are catching an uptick on the 2/10 steepener. You don't really believe we have massive inflation coming do you? And I assume what is good for Goldman is probably good for you or did you miss this move in the 2/10s?

No.

They are gone. That model only worked when traders could churn 100's of thousands of shares a day. Nobody does that outside of HFT firms. I agree on the coding suggestion. Look, if she is young she has no idea what she wants yet, none of us did at that age. And like all of us, she thinks...

I talk a lot about the yield curve on here and I found this article to be helpful in understanding the nuances between the 2/10 and 10/30. http://seekingalpha.com/article/4042586-yield-curve-tell-bit-growth-now-bit-less-later

http://ritholtz.com/2017/02/peter-l-bernstein-risk-2/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29 Great viewing guys. His book on risk is outstanding.

You need to be very careful. Each contract is unique. They can and do move in opposite directions. Caveat emptor...

Buffet is very close to the Fed and the government. He knew the bailouts were coming and he knew QE was coming. Remember the government approached him to bailout Bear Stearns and he passed but did invest heavily in Goldman. Based on what he knew, it was a slam dunk trade. At the very least...

I'm long the 2/10. I like it a lot. As long as the Fed stays behind the curve this will keep steepening. This will be accreative to bank earnings.

And another.... ftalphaville.ft.com/files/2014/01/Buffett-Puts-Jan-2014-2.pdf

https://ftalphaville.ft.com/2014/02/05/1762922/the-buffett-derivative-mystery-gets-more-exotic/ Here is an old article about some trades they did before the crash.

Long term. I believe they were to expire in 2019 or something like that. It was NOT an exchange trade but OTC and the agreement was that they could not force him to cover as it was a swap trade. However, the bank itself almost went under which is what made this thing interesting.

There was "chatter" in 2008 that Buffet WAS on the verge of ruin. He sold billions in naked puts on the SPX and rumor was he was days away from a margin call. The trade was held by Goldman and Goldman themselves were days away from being insolvent. Apparently, if you choose to believe the...

Sig, don't fight him. Thank him for proving liquidity for us. :)

Covered puts ARE synthetic short call spreads. LOL.

What happened to the sheep going down the mountain? LOL. Maybe they were the Under Armour Sheep.

Huh? We're less then 1% from fresh new all time highs.