best ways to go long/short volatility...

Quote from atticus:

I agree that flies are a poor long vol trade. Why limit the outlier for what's often a asymmetric risk? A straddle and a fly converge as you add width to the strikes, so if you knock the fly it's also an argument against the straddle. Narrow flies are not a bet on anything but a pin.

Gamma trading an ATM option IS a straddle.

So what to trade for the upstairs guy who wants long vola and doesn't want to ratio into some moronic naked short wing calendar? (Why trade the ratio calendar/diag when it quickly flips modality on vega?)

I like 1:1 diags which solve for a minimal gain if DITM, but hit max payout at mid (between spot and strike). Nearly flat gamma and a few thetas.
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Long ditm back month short front atm's ......?
Upstairs guys.... I hear that talked about a lot.


What do the floor guys do different.

You know some of these fuckers?
 
Quote from cdcaveman:

Long ditm back month short front atm's ......?
Upstairs guys.... I hear that talked about a lot.


What do the floor guys do different.

You know some of these fuckers?
More...

Yeah, the guy I mentioned who went bust going long vol in CL.
 
Quote from cdcaveman:

Long ditm back month short front atm's ......?
Upstairs guys.... I hear that talked about a lot.


What do the floor guys do different.

You know some of these fuckers?
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I've heard them called locals..... floor traders

Upstairs=prop desk?
 
Quote from atticus:

Upstairs to mean liquidity takers.
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Umm hmm I'm always interested in hearing about how people blow up... there are sooooo many ways to fuck yourself...there's no where to hide if your a pussy. Haha. Or if you think you got it licked
 
Short fly with short wings....... Friday of monthly opex.... put it on for the next weeks expire.. figuring on the underlying unhooking from open interest
....
?
 
Quote from cdcaveman:

Short fly with short wings....... Friday of monthly opex.... put it on for the next weeks expire.. figuring on the underlying unhooking from open interest
....
?
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i'm pretty sure OI only sometimes has an effect ... but just from some feedback and readings... it seems randomness has such an effect that even if OI does have a little bit of an effect.. Randomness will blow out those effects often enough for them to be hard to exploit...

So i look at trades on AAPL, BIDU, GS, GOOG... does anyone have parameters.. or shall i say a good filter for coming up with tickers that have good premium or should i be thinking differently? maybe is there good way to look for tickers that have overpriced premium on a regular basis? or vice versa?
 
Quote from amexfloor4:

I know (knew) a man who was in the same boat
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how many people admit their own blow ups... ?!!@ really.. so many ways to cut your own throat out there..
 
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