Pabst's Blue Ribbon Trades

[atticus]

Pabst -- consider selling the atm puts when going long the grains, 2:1 over the futures size you're contemplating [atm = 50d]. Scaling into futures sales as you earn on deltas. Eventually you'll leg into a short synthetic straddle at a tremendous credit.

Obviously calls work as well in the bond-bet, albeit into these whisper thin ZB and ZN vols. You can thank Pimco for the utter lack of stat and IV.

 

[Pa(b)st Prime]

Quote from atticus:

Pabst -- consider selling the atm puts when going long the grains, 2:1 over the futures size you're contemplating [atm = 50d]. Scaling into futures sales as you earn on deltas. Eventually you'll leg into a short synthetic straddle at a tremendous credit.

Obviously calls work as well in the bond-bet, albeit into these whisper thin ZB and ZN vols. You can thank Pimco for the utter lack of stat and IV.

Thanks for the advice bro. I said I was going to approach grains with that thinking but then these crap futures positions cause me to abadon rational game plans. Sort of like a team with a bad QB who's forced into throwing because he's down 14-0.

BTW: Awesome play in AUD.

 

[Pa(b)st Prime]

Not a lot of page views. Pisses me off. Is Puretick long Cotton, Corn, Beans (well I'm long like a tenth of a delta in Beans) and short Bonds? Or LBR? More page views or I'll be talking about fine meats and cheeses......

 

[Pa(b)st Prime]

Sold 1 ZB @ 110.09, short 13 lots. I'll be short 15 by the end of the day.

Trying to add in CT (I'm long 4) and I'd just as soon get that covered Bean call off my sheets. I'll leg out.

 

[pcvix]

Very nice ZB trade, Pa(b)st.

 

[JamesVU2000]

Looks like 10 year swaps are moving.

 

[Pa(b)st Prime]

Quote from pcvix:

Very nice ZB trade, Pa(b)st.

Thanks. I want to get bigger in Bonds but there's been little opportunity to sell healthy upticks. My last 3 tries I had 20 on by the time ZB was at 110. I'm going to buy puts financed with call sales. I need an options play that'll take me out of the 108-114 chop. Hence selling back month 114's and buying 106's seem's prudent.

I'd also like to increase my Cotton line.

 

[Pa(b)st Prime]

Quote from JamesVU2000:

Looks like 10 year swaps are moving.

Watch those swaps as the short end boys figure out that waiting for an ease is like waiting on Godot. He ain't coming.....

 

[Pa(b)st Prime]

Seems like I haven't made a trade in days (well two). Just watching Bonds break while I sit short and tight. Waiting to sell more on a rotation higher that just doesn't come.

 

[Pa(b)st Prime]

Just a couple of 1 lots so far today. Sold 1 ZB at 109.09 so I'm short 14 ZB and B 1 CTN at 49.14 so I'm long 5.

Positions: S 14 ZB, L 5 CTN, L 10 SN, S 10 SM 750c, L 10 CN, S 10 CN 4.00 calls