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The smartest way? You mean he didn't like your buying LEAPS calls for their short vol exposure?

raVar, why so shy about posting your fundseeder stats? That bad?

They should fill equal, but always trade the OTM position when possible.

Arbitrage!

Guys... it's all about periodicity. Having non c0rrelated option POSITIONS in diffent periods.

In this context it's the edge loss from trading the deep ITM in lieu of the OTM (equivalent). You're looking at a bear call diagonal at a 14.5 debit (20-wide) but it's deep ITM so you trade the put diagonal (OTM) at a 6 credit. The NBBO mid may reflect a 0.50 edge loss on the call due to being...

sqrt of 252 rounded to 16. vol is prop to the sqrt of time.

IV/16 for the daily. An auction market value vs. a smoothed MA of the TR? That shit is witchcraft.

lol he's talking about OTC, swaps, arbitrage. I've personally busted OTC dealers in digitals and exotics. I trade thousands of contracts in vanilla equity arbitrage each year. Think boxes. I have traded swaps professionally. This ravar clown thinks a long call is short vol. Enough said.

Vol at expiration is zero.

raVar wrote: Buy the calls, six to eight months in the future, with strikes three to four deep ITM. That way, if I'm right? Then hopefully the falling IV will help me enough to overcome some of the other math, and my delta's will thus improve with the passing of time (though time is working...

Gold. Correlation can change. No. Cycle-length has nothing to do with time to exp or holding period. That's trading ebonics.

Nobody called it the "O'Hare Express" trade. You've never seen the floor of any exchange.

He was using "non correlated" to describe a position that was bimodal to delta. "non correlated" bc he's holding a bear-vert on QQQ against a SPY cash long? So he was "non correlated" (sic) at inception, but that would have changed to "correlated" had the mkt taken a sh!t. Garbage. He's nuts...

I am not calling the concepts silly. Volatility is negatively correlated to SPX index price. Stating that QQQ is "non correlated" to SPY is laughable. Stating that shorting a 15D call vert is non correlated is silly. It may be an outright short or a hedge, but correlated is not in common usage...

To the OP. Don't start with singles (long call or put). Start with bull and bear verticals. The synthetic relationship is governed by the box arbitrage, so it doesn't matter whether you buy a call vertical or sell a put vertical; they are equivalent. Delta sign will not invert, but...

lol ravar, what was your badge? What non correlated periodicity did you trade at NYBOT?

"Non correlated" as used by the ravar dude is just silly. SPY and QQQ are correlated. "Periodicity" is not used to denote duration in trading. Go define the term. I really don't care who wins or loses. It's more a pride of authorship for anyone here who is experienced to not allow complete...

The Zoroastrian is still my barber.

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