Options on Futures - Electronic/ Pit Combo Orders

Quote from CPTrader:

Thx.

So what equity markets would you favor for these kind of trades? How about currencies?

A quick question, slightly off topic.

Will butterflies and condors always be short gamma/vega ( at lest at trade outset)?

Are there any other option spreads that are short gamma/vega , yet limited risk?

Thanks!
More...

Individual equities or ETFs. The aggregate bid/offer on index options can exceed the debit risk at FairVal. Google is a fantastic stock for trading complex positions as the vol is large yet trades discrete. Where else can you find a $400 stock that trades a nickel bid/offer? Also, the vol smile MOVES on Google, and often the smile moves > the -20d to +20d strip vols. Truly the tail that wag the dog.

Yes, a neutral delta "long" fly will always carry a short gamma/vega position.

ITM verticals, among others.
 
You must log in or register to reply here.
Back
Top