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I don't think he knows what contango is.

Huh?

And how do you protect yourself from inflation Steve?

So who is trading with these guys now? Any reviews?

No, we are in agreement there. I have always asserted that trading in general is very challenging. Even simply investing is challenging. Getting involved in things like optimizing asymmetric payoffs is something that should not be done by mom and pop types (most of ET). I do lots of these...

No, that is not what he said. Almost all his OTM structures are financed. I do this all the time, in fact almost every month. You lose maybe 5% and possible make 50 to 100 times that if you are right. It's all about asymmetry. I do agree with you though that retail people should not do this...

No Bob, what he is asking is what many here on ET ask and that is,I see the VIX at 11, that looks like free money, how can I buy it....at 11!!! They just don't understand how these structures work.

No, what I meant was, pretend there were no futures and your neighbor said, hey Der, make me an offer on a 25 day Vix market. You could say anything, say, I'm 25 offer, 30 offer, 15 offer, whatever. What would you offer. In 25 days you would have to pay out to your neighbor the price difference...

As I explained in your other thread, there is NO way to buy spot VIX period. You have to pick your spot on the curve. This will hold for CFD's or any other derivative product.

Think of it this way. If you were a market maker and you HAD to provide a firm offer (meaning a price you will honor and won't back away from", where would you offer VXG that expires 25 days from now? I know you wouldn't be offering 11.54. How high would you offer?

Let's use real prices as that will make this easier. Current cash VIX (which you can't trade) is 11.54. The future that expires in 25 days is the G contract. VXG is currently 13.85 offered. It's $50 a tick. A tick is .05. So there are 20 ticks to a point. That means each point is $1000...

All he had to do was take the weights of the stocks: https://fusiontables.google.com/DataSource?docid=1WPXwv58K-PLPFwo7uKjDkMnHzH1Lj_2tl1N47xQ And use whatever broker he is using to export the bid/ask prices to excel multiply times the weights and sum the total and presto! You get your...

Which is exactly what I said.

SPX bids and offers are synthetic. If you take all 500 stocks and their "bids" you get the bid price for SPX. Take all 500 stocks on their offers and you get SPX offer. This is "theoretically what you would get if you wanted to do the arb i.e buy all 500 stocks on the offer or sell all 500...

Guys, take this shit to P&R. Let's try to keep the trading threads to trading. This crap belongs in the basement.

Not true. Most firms allow you to purchase stock as part of the 401k plan. You can defer up to some % of your salary (usually 10% of gross) toward company stock. So if you make 50k a year, you can buy up to 5k worth of stock a year and yes you can buy the stock at a 15% discount. You can not...

I wish I one day could have a conversation with you where you leave out your personal feelings about someone and focus instead on solely the topic at hand. You must be the only man in the world Marty that doesn't lose money. Even Jim Simons has drawdowns. We'll leave it at that. Pride goes...

I'll take the other side of that. Rodgers is on a mission.

Thank you for proving my point. You obviously take risk for a living as do I. Now theoretically you "could" have a drawdown of some magnitude but you would describe it as something that is unlikely as would I. But why are you so damn quick to point out every damn flaw in how a simple strategy...

Listen Daal, I'm not going to fight you. Just call me a liar and move on. It's in his book word for word but no I don't feel like dragging it out and flipping through pages to find it. It will be much easier to call me a liar and move on and just say I'm making it up. We can move on to our...