Dispersion...non-institutional

[xflat2186]

Quote from matador04:

Isn't there always a better and more sophisticated trader out there?

In some cases I would say yes but just realize that you're in the arena with some of the most spohisticated and tech savy firms in the world with much deeper pockets and resources than an individual.

 

[heech]

Quote from matador04:

I expect that to be the case for most popular strategies--if not all strategies. I understand a lot of the edge is gone, but I'm willing to speculate on vol, instead of arb it away. I can't compete in the arb space, anyway. Isn't there always a better and more sophisticated trader out there?

Nothing wrong with speculating in vol. Probably easier ways than dispersion, though. Like you yourself said, a lot of slippage there when you're dealing with so many instruments.

I've always wondered about speculating in vol between options on commodity ETFs versus options on the underlying future.