Crude options plays, anyone?

CBC said:
Ha, yea. We should become market makers. Sounds all to easy for them.
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I wouldn't think so. I hear about business margin contraction all the time. Never an easy spot to be in regardless of business.

Of course, I could be delivering pizza. But, my current fantasy is to own a dry cleaning business.
 
xandman said:
I don't know how MMs do it and still keep quoting during the day. Incredible.

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You widen the quotes a bit... activate auto-hedge... or not and play around a bit. MM's have already idea's about what would roughly happen to IV when something might happen. You have to adjust vols quickly and hedge delta's and trade in/out of vega. Sounds easier than it is, but when you're on top of it it's not too bad.

I was MM during GFC in bank stock options... now that was fucked up. IV up and down 20, 30, 40 points. Vols of 150+...

But you adjust and get on with it.
 
I've read a few stories about market makers on bloomberg.

From what I've read, jump trading makes quite a lot of cash from it. + a few others.

Thanks for your thoughts jackrab.

See how the next few days go to tell if CL opt is tradeable for buyers.
 
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