Short DAX at 7740

[ASusilovic]

Sell 6055.00 nor better. Target 100 points lower.

 

[esmjb]

krauts should be higher WTF

 

[ASusilovic]

Quote from esmjb:

krauts should be higher WTF

It's called profit taknig or "sell program".

 

[ASusilovic]

Quote from ASusilovic:

Sell 6055.00 nor better. Target 100 points lower.

Still waiting for this target to be hit...yawn

 

[ASusilovic]

Quote from ASusilovic:

Entering 6100,6150,6200,6250 calls. Risk free investment according to Goldman Sachs. DJ Stoxx 600 to rise at least another 20 % in 2010.

Risk free options.

 

[esmjb]

Quote from ASusilovic:

Risk free options.

what price did you pay for them and what are they worth now? what about your short dax futures you sold last week?

 

[archimg77]

Quote from esmjb:

what price did you pay for them and what are they worth now? what about your short dax futures you sold last week?

Who knows what he does !?
You enter long options and delta hedge it, you can underhedge, overhedge, it is up to you.

Given last post with that last bunch of calls 6100-6250. If he was delta hedging he would have made money. If he was not hedging then he wouldn't (I guess but didn't check).

 

[archimg77]

Quote from archimg77:

Who knows what he does !?
You enter long options and delta hedge it, you can underhedge, overhedge, it is up to you.

Given last post with that last bunch of calls 6100-6250. If he was delta hedging he would have made money. If he was not hedging then he wouldn't (I guess but didn't check).

You can check prices over here:

http://www.eurexchange.com/market/quotes/IDX/DAX/ODAX_en.html#table

 

[ASusilovic]

Quote from archimg77:

Who knows what he does !?
You enter long options and delta hedge it, you can underhedge, overhedge, it is up to you.

Given last post with that last bunch of calls 6100-6250. If he was delta hedging he would have made money. If he was not hedging then he wouldn't (I guess but didn't check).

Of course, I do not delta hedge. Doesn't make sense at all. A dynamic approach is needed. I have already pointed several times to a research paper in this thread as to the advantages of dynamic hedging.

Nevertheless, this technique should be executed by experienced traders - otherwise you pay too much premium to the London desks...

 

[esmjb]

why are you paying any premium at all? why dont you execute on eurex yourself? you bot upside calls, market went up however im assuming vol got crushed which is why im asking what you paid and what they are now.