Option Pit

[destriero]

@Robert Morse is not really a good example. I'm pretty sure he paid a lot to get the level of knowledge he has. And I'm pretty sure he would not dispute the fact that long straddle is by default a non directional strategy. Exactly like strangle, butterfly, iron condor, calendar etc.

Any of those strategies can be modified to use different strikes and become directional, but it is a common knowledge that those strategies have been designed to be non directional.

So yes, there are few exceptions here, but whoever initiates a whole discussion to prove that straddle is not a non directional strategy, either has no idea what he is talking about, or simply wants to discredit me.

You've discredited yourself.

"non-directional" straddles are not the "default" construction.

Skew: You're looking to get long exposure to SPX cash. The ATM vol is 12. The 25D P/C risk-reversal is quoted at 16/9 vol. You buy the +40D straddle at a vol of 13. SPX rallies 10 points and you're up on delta and skew. Your straddle strike is now printing 14 vol. An edge on skew.

 

[destriero]

lol now he's deleting posts.

 

[Kim Klaiman]

I'm sorry I got sucked into this pointless discussion. I should have known better who I am dealing with. I guess if people like you are considered experts here, then there is not much left to say.

But then again, when people are using personal attacks and insults to make their point... I guess "every country deserves its leaders". This style of communication would get you banned from SteadyOptions forum a long time ago.

It was a complete waste of my time. I understand that for some of you there is no better use of your time, but for me this is not the case. Have to make money for myself and my members.

Bye Bye.

 

[El OchoCinco]

This style of unpaid for advertising would get you banned from most forums a long time ago.

 

[destriero]

This style of unpaid for advertising would get you banned from most forums a long time ago.

I am fairly certain that he loses subs after this exchange.

 

[sle]

@Robert Morse is not really a good example. I'm pretty sure he paid a lot to get the level of knowledge he has.

Rob is here in a professional capacity, so he probably can't comment. However, between myself and @destriero there is probably 40+ years of volatility trading experience, across various asset classes and market regimes. I myself am running a fair bit of capital as a PM at a major fund. So I suspect that we know what we are talking about, at least somewhat.

butterfly

A lot of people view 1x2x1 butterflys as directional volatility strategy. I believe @destriero has a whole thread about it. In an case, I am sure you are not interested.

As I said, if you are trying to prove that you are the only one with the holy grail, please give us an example of that sacred knowledge.

 

[destriero]

I can't recall the last time I'd traded a fly neutral at inception.

 

[El OchoCinco]

What's the matter with you? Is this what you've become, a Hollywood finocchio who cries like a woman? "Oh, what do I do? What do I do?" What is that nonsense? Ridiculous!