Kudos to MMs

Quote from nitro:

Either way long gamma wins as long as it moves.


Too soon imo.
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Thanks for precision, I thought you meant by parabolic move that you were long biased.

Long weekend premium should be priced in by end of Friday's trading-- notice the "should".

Good luck to you.
 
Quote from nitro:

...and if we lose at least 1 STD to the downside, and then move from there in either direction, I make.
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For those that are interested in following if I make or lose money, here is approximatley where I will be hedging. Take the value of VIX, say it is 25 for the sake of argument. Say SPX is 1070. I need SPX to move at least 25 / Sqrt(252)) = 1.5% to break even to the downside, or ~16 handles.

Since I am leaned to the downside, the actual % is closer to 1%, or about 11 handles. So at ES ~1053, I hedge my deltas by buying futures. If it goes higher, I have a harder time breaking even, but if it goes alot higher, I start to pick up deltas quickly.
 
Quote from riskfreetrading:
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Long weekend premium should be priced in by end of Friday's trading-- notice the "should".
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SPX MMs generally have priced in the weekend by late Thursday (it's more complicated than this as they split time into two, voltime and banktime hence what they are decaying is vola time not bank time), so tomorrow, they will take out some fraction of Tuesday's premium, unless vola is bid on Friday morning.

Good luck to you.
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Thanks.
 
Has the rest of the world had enough?

Asia steps in to support dollar

By Kevin Brown in Singapore, and Peter Garnham and Chris Giles in London

Published: October 8 2009 15:09 | Last updated: October 8 2009 20:43

Asian central banks intervened heavily in the currency markets on Thursday to stem the appreciation of their currencies against the US dollar amid fears that their exports could be losing ground against China.

The mainly south-east Asian countries have been spurred to defend the competitiveness of their currencies by China’s decision to in effect re-peg the renminbi to the dollar since July last year.
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http://www.ft.com/cms/s/1e894c54-b4...showthread.php?threadid=178638&nclick_check=1
 
Yeah, I had a great day on figuring out that the max pain point was close for the rest of the world. Sold out of my GDX pre-market for a very high price, put a short in place during the day. Should work out nicely tomorrow closing that out.
Central bankers are, sometimes, thankfully, almost pathetically predictable. (...and karma will bite me hard in the posterior, I'm sure, for this post. Oh well.)
 
Sold the 1040/1080 strangle around my long "straddle" to recover some theta. So I now have an "iron condor" like position on.

This market is dead.
 
Quote from nitro:

Sold the 1040/1080 strangle around my long "straddle" to recover some theta. So I now have an "iron condor" like position on.

This market is dead.
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I don't deliberately sell volatility, but today I sort of fell into it. Every option position save one (I mostly sell) was in the green today.
 
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