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Look up at the top of your screen......right between "Books" and "Chat"

RUT IV is RVX

Did coach just buy some call hedges?

So this is a directional trade (ie put on when short signal is generated)? Or is it put on when IV is low?

I've often wondered the same thing myself. I know of a $400M-$500M long/short utility fund that shut down because the head guy woke up one day and decided that oil above $40/barrel was not sustainable. Lost enough $ making bad directional bets that the big investors pulled out and the fund had...

Try switching from "Single Symbol - NOT WEIGHTED" to "Portfolio - BETA WEIGHTED" on the analysis page of tos. You can model SPX with SPY, and anything else you want, on the same P/L graph.

any idea where in that 10-15 pt spread you could get filled?

I too have modelled the effect a 10% drop and a huge vix spike on a double (or single) diagonal. The question I have is how wide will the option b/a spreads be in the event of a black swan, and how far from the mid will you be able to get filled. Thanks Pete

Coach bought put hedge!:eek:

http://www.elitetrader.com/vb/showthread.php?threadid=49586

You might also experiment with wider strikes. Haven't looked into this as much as I would like, but wider strikes on the diagonals seem to lessen the effects of a drop in IV.

Has anyone addressed whether or not options on futures are subject to pattern daytrader rule?

Coach; I seem to recall your mentioning a long while back that you knew someone at a hedge fund who was trading very wide credit spreads, ie 10x100pt spreads instead of 100x10pt spreads. I am curious to know how his positions have fared these last few weeks what steps he has taken to...

Not a trivial issue imo. The relationship between index/stock and future that we are all accustomed to does not exist with VIX. Only close to expiry will vix future CLOSELY mirror the index. A far month VIX option could have a relatively muted response to a spike in VIX index. This could affect...

Pimp is correct. There is a webcast at www.cboe.com that deals with this exact topic.

If the stock has moved since selling the straddle, is it better to offset straddle as opposed to putting wings on? For example: Sold MSTR 100 straddle for 15.0 a few days ago and the stock is currently arround 92. I could offset straddle for 13.05, or 1.95 profit, or Buy 90/110...