Heavy Put Buying? (deep OTM)

Real Money

Real Money

So, the put OI on ES ballooned going into the close on Friday. (vol crush)

Buying far OTM puts with very near expiry is a bet on index vol right?

Is this just a hedge for index buying? Is it banks laying risk off on GLOBEX?

OI.png

EWV2 is the Monday Expiry and E1BX2 is Nov. 1 -- a day before the FOMC and Fed Funds announcements.
 

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Real Money said:
So, the put OI on ES ballooned going into the close on Friday. (vol crush)

Buying far OTM puts with very near expiry is a bet on index vol right?

Is this just a hedge for index buying? Is it banks laying risk off on GLOBEX?

View attachment 298416
EWV2 is the Monday Expiry and E1BX2 is Nov. 1 -- a day before the FOMC and Fed Funds announcements.
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No, wing buys close to exp are stops. Smile is a function of vol of vol but you cannot avoid it. It’s explicitly a -edge trade. Expensive in vol-terms but cheap notionally.
 
piezoe said:
Some of your posts remind me of this scene from airplane.
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Please don't take this the wrong way. I was wondering if you have Asperger's syndrome? They believe all these people have it...Including Elon Musk.


  • Dan Aykroyd - Actor and Film Writer. ...
  • Albert Einstein - Scientist & Mathematician. ...
  • Daryl Hannah - Actress & Environmental Activist. ...
  • Anthony Hopkins - Actor. ...
  • Heather Kuzmich - Reality TV Contestant & Model. ...
  • Tim Burton – Movie Director. ...
  • Henry Cavendish – Scientist.
My son in law has it...Brilliant engineer/mechanic/electrical. I see him playing Tetris in his mind during down time...
 
Cabin111 said:
Please don't take this the wrong way. I was wondering if you have Asperger's syndrome? They believe all these people have it...Including Elon Musk.


  • Dan Aykroyd - Actor and Film Writer. ...
  • Albert Einstein - Scientist & Mathematician. ...
  • Daryl Hannah - Actress & Environmental Activist. ...
  • Anthony Hopkins - Actor. ...
  • Heather Kuzmich - Reality TV Contestant & Model. ...
  • Tim Burton – Movie Director. ...
  • Henry Cavendish – Scientist.
My son in law has it...Brilliant engineer/mechanic/electrical. I see him playing Tetris in his mind during down time...
More...
If I do, I am unaware of it. Is that one of the symptoms.
 
piezoe said:
If I do, I am unaware of it. Is that one of the symptoms.
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No he wasn't doing it...But something like that.

We were selling our farm in CA. He came down from Montana to California with a 1 ton truck and huge trailer. He went back with as much; tractor, parts, implements, Bobcat that he could carry (middle of Covid). He summed up every item and looked far away...Just a couple of measurements. He then stepped back and put everything (50+ items) in each location. The weight was distributed correctly and it was perfectly counter balanced.

I would try and make small talk...His mind was elsewhere. He was in a zone...

To most people he will hardly respond to anything. BUT, you get him on a subject he enjoys; drones, engineering, mechanical, electrical, physics...He'll talk for an hour or two.

He really is a nice guy, but when he gets in that zone...
 
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