300.

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Quote from atticus:

1) You're mentally-ill if you think anyone would buy into this structure. You employ a risk-manager who hedges to a defined-risk standard.

2) You can't hedge to a defined-risk or any other delta-hedge on an intraday basis. I would assume you're referring to hedging overnight positions via a partial synthetic call or put; better, but still dumb.

On one had you're talking going home flat; on the other you're talking about hedging... you're going to buy insurance for an intraday position? Or replicate with synthetic puts or calls to carry stuff overnight? You think your (sic) top producers are going to pay for insurance for the collective?

3) You would be shut-down in a week if you began to tout your book on Twitter. I can't fathom the brain-pan that would consider this a good idea. You would have zero-impact on price, and it's illegal as you would be operating as a B-D.

It's obvious that you're out of your depth and/or haven't given this a lot of thought.
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1. of course they wouldn't. never said they would. i absolutely agree. and i'd hire the best name i could find and offer him a massive bonus package based on performance and a $1 year salary.

2. look at any chart of any stock today and tell me how you hedge for overnight risk at the open carrying over from the close without being either flat or hedging in the opposite direction just in case you're wrong, or something happens while you're sleeping.

can you predict the future?

3. i tweet my positions to my trader buddies all day and night long, in all three major major markets. so far no one has shut me down and doubt highly they will...

not any brain dead than you are for thinking anything is possible in the world if an AIG can take down a $200T financial system built by men who thought they knew what they were doing.

perhaps the rules of engagement need to change in the little guys' favour.

tweet.
just bought 10,000 BAC at 10.69.
 
Quote from TRYKtrading:
.....find 300 guys with.......battle scars....
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You may be better off just to hire Marines who are returning from overseas and bankrolling them. :cool:
 
Quote from TRYKtrading:

otherwise, sod off, ivan.
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Sorry, I was having a laugh on your expense. Most of what you wrote is over my head. Again I apologise and good luck. I meant it!
 
Quote from TRYKtrading:

1. of course they wouldn't. never said they would. i absolutely agree. and i'd hire the best name i could find and offer him a massive bonus package based on performance and a $1 year salary.

2. look at any chart of any stock today and tell me how you hedge for overnight risk at the open carrying over from the close without being either flat or hedging in the opposite direction just in case you're wrong, or something happens while you're sleeping.

can you predict the future?

3. i tweet my positions to my trader buddies all day and night long, in all three major major markets. so far no one has shut me down and doubt highly they will...

not any brain dead than you are for thinking anything is possible in the world if an AIG can take down a $200T financial system built by men who thought they knew what they were doing.

perhaps the rules of engagement need to change in the little guys' favour.

tweet.
just bought 10,000 BAC at 10.69.
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1) I am stating hiring a risk-manager to employ options-hedge would be a BAD idea. The risk-manager should only cover crowded firm trades and notional-limits in SPOT.

2) We can't really discuss this because you're not equipped. You will be trading synthetic puts and calls if YOU'RE HEDGING WITH OPTIONS. This is a whole new set of risks that you're ill-equipped to manage. Your firm is long 300k XOM from 70 and you buy 1500 puts.

3) You're embarrassing yourself. Hit Start > Turn Off Computer.
 
Quote from TRYKtrading:

tweet.
just bought the BACJUN11P to cover overnight.
let's see how i do on the open monday?
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So you're long 10k BAC. How many puts?
 
Quote from atticus:

Uhh, yeah you can. A JBO-haircut requires a nominal vega-exposure based upon a couple deviations in risk and some decay. Regardless, you're replicating a call or put, and I'd guess that's not what you really want to do.
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ok, let me clarify:
i don't trade options on margin because i don't use margin, my account is sufficiently capitalised in cash across multiple currencies (thereby hedging my overnight risk) so that i don't have to worry about complex risk strategies.

i'm either long or short, with my ass covered by buying puts or writing calls, or the reverse derivation thereof.

this isn't rocket science, doc. you're either in or you're out. anything in between is just masturbation.
 
Quote from TRYKtrading:

ok, let me clarify:
i don't trade options on margin because i don't use margin, my account is sufficiently capitalised in cash across multiple currencies (thereby hedging my overnight risk) so that i don't have to worry about complex risk strategies.

i'm either long or short, with my ass covered by buying puts or writing calls, or the reverse derivation thereof.

this isn't rocket science, doc. you're either in or you're out. anything in between is just masturbation.
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Clarification or not, you're still wrong. You can trade the hedge with less impact on your liquidity, but it's still a non-starter.

You can think I am FOS all you want, but your basic premise is dead on arrival. It's really not open to interpretation.
 
Quote from atticus:

So you're long 10k BAC. How many puts?
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50.

in this case, i am only covering half my position in case support line breaks at 10.58, and my stop loss is set at 10.57 on both the stock and option.

if i'm wrong, i take the loss and reevaluate or reverse. i could set a reverse buy but i'm guessing BAC isn't going down much further, and i'm mostly doing this to prove a point.

i'll likely sell the put on monday morning and take the loss because monday is a holiday and i'll be at my cottage.
i'll stay long until it when (not IF) it hits 12.54 and take my profit.

and gloat.

have a great long weekend.
 
Quote from TRYKtrading:

50.

in this case, i am only covering half my position in case support line breaks at 10.58, and my stop loss is set at 10.57 on both the stock and option.

if i'm wrong, i take the loss and reevaluate or reverse. i could set a reverse buy but i'm guessing BAC isn't going much down much further, and i'm mostly doing this to prove a point.

i'll likely sell the put on monday morning and take the loss, and stay long until it when (not IF) it hits 12.54 and take my profit and gloat.
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OK thanks!

You're now long 50 synthetic 10 calls and long 5k spot. There is no way in hell that anyone is going to sign-on and watch you trade-away their risk by replicating half of their position.

The prop-trader is not going to ask you to hedge for them. They are looking for a free-call on their skills, not for the responsibility of trading to be assigned to some risk-manager.

5/25 is Memorial Day.
 
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