Option pros. What do you think of this?

Quote from riskarb:

]He's stated this is a vol-play, although choosing deep ITM options with virtually zero vega isn't what you want to do to play a proxy for CL volatility.

If you want to play upside gamma, buy OTM. If you want to play vega, buy ATM a few months out, but don't buy deep ITM 80+delta calls for their vega -- there isn't any! [/B]
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I don't think Cramer is options savvy enough to know anything about what options traders know as volatility, or vega. By "volatility" he probably is referring to the erratic movement of the underlying. In other words the stock is "volatile" in that it "moves around a lot", so one should sell the stock on "spikes" in order to "make money."

Cramer is not really a trader. He is an ENTERTAINER, and not a bad one, at least according to the Nielson beancounters.
 
Quote from smilingsynic:

I don't think Cramer is options savvy enough to know anything about what options traders know as volatility, or vega. By "volatility" he probably is referring to the erratic movement of the underlying. In other words the stock is "volatile" in that it "moves around a lot", so one should sell the stock on "spikes" in order to "make money."

Cramer is not really a trader. He is an ENTERTAINER, and not a bad one, at least according to the Nielson beancounters.
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I would have to disagree. His personal acct is doing pretty well compared to most managers and considering the stupid regulations he has in place.

24% a year at his hedge fund.

He is a trader.
 
He's paid dearly (6-8 cents per share) to front run reports and news and to hear what others were doing.

It's no coincidence that he bailed on his hedge fund the exact month Reg FD was enacted. His game was up. And now that he doesn't have any exclusive information..... it shows


Quote from KevinK:

I would have to disagree. His personal acct is doing pretty well compared to most managers and considering the stupid regulations he has in place.

24% a year at his hedge fund.

He is a trader.
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Quote from KevinK:

I would have to disagree. His personal acct is doing pretty well compared to most managers and considering the stupid regulations he has in place.

24% a year at his hedge fund.

He is a trader.
More...

Yes, I would agree with the Dr. here.

His returns had little to do with understanding the vega (vol) of options. He bought (still buys) options as a sub for the underlying. As far as I know he has NEVER traded volatility, as option traders do.

He was never a strategist, but a pure gut feel speculator who got out at the right time: before the rules changed, and before he lost ALL of his hair.
 
I have to agree Cramer is no trader ..... what massive trader gives it up to be on CNBC .... the real big boys make more in a day than he probably does in a year.


As far as being a hedge fund manager something doesnt smell quite right . He bailed out it in a hurry with 24% on what 50 to 100 million???? dont remember .



CRAMER IS A CRACKHEAD
 
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