Riskarb's combo to fly conversion journal

Closed the RMBS 45 straddle for the profit of 1.00. The VOLs did not drop much after earrings report. The gains are from theta decay.
 
Quote from mantenar:

Closed the RMBS 45 straddle for the profit of 1.00. The VOLs did not drop much after earrings report. The gains are from theta decay.
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The May vols dropped 300basis; there wasn't a dollar in decay.
 
geebus! I missed the entire move. I am out of the 45 straddle/40 PF. made an insignificant sum on the straddle, lost 2 handles on the PF.

Got lazy and didn't get current on the Hynix trial, mea culpa.
 
Sad to hear that B :(.

Up around 3 on the PF based on closing prices. But man its a pretty hollow win because if the trial went the other way then I would be sitting on a equal sized loss.
Based on the trading tomorrow I am going to liquidate out of the position.
 
Quote from mahras2:

Sad to hear that B :(.

Up around 3 on the PF based on closing prices. But man its a pretty hollow win because if the trial went the other way then I would be sitting on a equal sized loss.
Based on the trading tomorrow I am going to liquidate out of the position.
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Yes, I would get out of that, asap. Nice work.
 
Yea I should have been paying attention to it during the trading day. Judging by the surge after hours it should be opening up 3-5% tomorrow, not good for the PF. IV is nuts 35C at 136 and 35P at 147.

Did you make any GOOG plays?
 
Quote from mahras2:

Yea I should have been paying attention to it during the trading day. Judging by the surge after hours it should be opening up 3-5% tomorrow, not good for the PF.

Did you make any GOOG plays?
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I can't see 5% hurting that RMBS position. I sold the 380 Jan 1x2 PF and the Jan 420 straddle to maintain neutrality with carry.
 
If vol stays the same tomorrow then the profits would be around 2.5 or so if it opens at 40.5. Hopefully vols will decrease a little.

Good luck with the GOOG position.
 
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