I'm going to go out on a limb and say most hedge fund traders are total hacks.....
convexx's stfu journal
- Thread starter convexx
- Start date
I have zero idea what's going on in this thread as I don't understand options, but it's still one of my favourite threads, lol!
I opened a thinkorswim demo account so I can play around with trades and maybe follow some of yours if I can work out how to place the same ones!
You usually place trades based on your expectation of the volatility of an instrument rather than the direction?
(except when you place a plain put/call trade. The only option trade i'm really aware of)
If so, what sort of things do options traders look at in order to predict this?
e.g, most of the traders on this site trade futures/equities, just going long and short, and use charts/technical analysis to decide whether the instrument is gonna go up or down.
What do volatility traders use?
I often take a directional bias. I can't really go into much detail other than to say the passive % of the portfolio is primarily invested in narrow-strike // long duration index flies in which I am modeling gains on a wing touch. It's robust and not terribly capacity constrained.
I spend most of my day legging into inside/outside combos to arbs.
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What's considered narrow in percentage terms?
some money managers that i,ve met ex morgan stanley and etc are more into equities picking. they dont understand futures nor options trading at all
when u say arb do you mean mostly box spread type arbitrage ?
