Short gamma trade in EBAY

[Maverick74]

Quote from riskarb:

Found it... uh... you do know that I'm short gamma/vega, right? If you want to malign the ebay trade, plase take the opposing position -- put your vast ego on the line.

I'm trading this in a swing time-frame, I know the risks, so no need to underwrite it for me, Mr. Allstate, I'll be fine, win or lose.

I mean, it's only logical, if you're so certain I'll lose, then why on Earth wouldn't you trade such a sure-thing as the EBAY feb 65 combo?!?

arb.

Two reasons. One is I agree with you that vol is going to come in so why would I want to go long vol? Two, I think there are far better plays to tie up my capital with then EBAY. With as much money that you have on the table, you are yielding very little profit. That's if this works out for you. Since you basically were short right off the bat if EBAY comes in a few pts you will make a little bit of money.

But still, I have your margin on that position at around $272,000 and I think it would be a miracle if you made over 10k or so. That's a pretty sloppy yield. Even if your are just holding this trade for a week. Remember your position has unlimited risk. I don't know, I just don't see it. But look, it does no good to argue about it. We'll see where it is next week. If I'm wrong and vol implodes 10 or 15 pts and the stock does not gap on you then I will apologize. Just trying to offer some advice that's all.

 

[riskarb]

Quote from Maverick74:

Two reasons. One is I agree with you that vol is going to come in so why would I want to go long vol? Two, I think there are far better plays to tie up my capital with then EBAY. With as much money that you have on the table, you are yielding very little profit. That's if this works out for you. Since you basically were short right off the bat if EBAY comes in a few pts you will make a little bit of money.

But still, I have your margin on that position at around $272,000 and I think it would be a miracle if you made over 10k or so. That's a pretty sloppy yield. Even if your are just holding this trade for a week. Remember your position has unlimited risk. I don't know, I just don't see it. But look, it does no good to argue about it. We'll see where it is next week. If I'm wrong and vol implodes 10 or 15 pts and the stock does not gap on you then I will apologize. Just trying to offer some advice that's all.

Dude, when you're "fairly certain" I'll lose money, then the inverse holds true, right? Sorry, but you're talking out of your ass.

Seriously Mav, if it does drop 1500bp I will take a month off and fly somewhere tropical, with no laptops, cell phones or broadband to be found.

Really, no need to apologize if it came to pass(1500bp drop), it would be wasted effort on your part, meaningless. I've been trading a large book for many years, on and off the floor, and if I need your advice, I'll ask for it. The initial post never mentioned a plea for help from a guy trading prop at GreenTree, or wherever you clear.



arb.

 

[Maverick74]

Quote from riskarb:

Dude, when you're "fairly certain" I'll lose money, then the inverse holds true, right? Sorry, but you're talking out of your ass.

Seriously Mav, if it does drop 1500bp I will take a month off and fly somewhere tropical, with no laptops, cell phones or broadband to be found.

Really, no need to apologize if it came to pass(1500bp drop), it would be wasted effort on your part, meaningless. I've been trading a large book for many years, on and off the floor, and if I need your advice, I'll ask for it. The initial post never mentioned a plea for help from a guy trading prop at GreenTree, or wherever you clear.



arb.

Like I said, we'll what happens in two weeks. I clear through AMB Amro and trade through a market making firm. But hey, it's no Interactive Broker. That's where the big guys trade right. I've seen their trading platform and I can't believe for the life of me you trade on that platform. If you are swinging that kind of money, get on a decent platform for options.

If I have to tell you again, this is driving me nuts. There is no yield on that trade. I don't want to take the other side of it because there's nothing there. That was my whole point, you are putting on a massive trade with only -3500 vega. You have no edge on this trade.

But look, no more, this could go back and forth all day and I don't want people to not post their trades because they think they will get attacked. I think it's pretty arrogant of you to strut around the boards and brag about how much money you are making or are not making. I read through that whole s&p topping thread and that thread was a disgrace. Two freaking guys arguing who has the biggest dick. That's what this board has come down to. If you are really making that kind of money you would shut up and enjoy your life, you wouldn't feel the need to brag about it for 30 posts on a message board. And I'm not just knocking you, JS was as much as fault as you were. It's just not a very classy thing to do. But I'll leave it at that.

Like I said, good luck on that trade.

I really miss the days where Metooxx was the big swinging dick around here. Now there's a guy that was trading 20k cars a day and never once peeped about his profits.

 

[riskarb]

Quote from Maverick74:

I think it's pretty arrogant of you to strut around the boards and brag about how much money you are making or are not making. I read through that whole s&p topping thread and that thread was a disgrace. Two freaking guys arguing who has the biggest dick. That's what this board has come down to. If you are really making that kind of money you would shut up and enjoy your life, you wouldn't feel the need to brag about it for 30 posts on a message board. And I'm not just knocking you, JS was as much as fault as you were. It's just not a very classy thing to do. But I'll leave it at that.

Maverick, you're wearing your "issues" on your sleeve. I need not reference your slanted political views, not my style. I'm simply glad that you've at least you're confronting those personal demons, and I understand now why you're being such a flaming hemmie.

You'd think someone with your class would feel the indignity of responding to such a horrible, horrible person, after all, who are you defending, EBAY? Meg Whitman? Apparently the irony of your responses is lost on ya, pity.

Respond at will -- I can only do my part and cease the flaming/response/flaming here... I will revisit my original thread when I trade the position.

arb.

P.S. And, FWIW, I'll be looking to pull $1.40 out of that position in the next two weeks -- I'll do the math for ya, it comes to: $56,000 before commish.

 

[Maverick74]

Quote from riskarb:

Maverick, you're wearing your "issues" on your sleeve. I need not reference your slanted political views, not my style. I'm simply glad that you've at least you're confronting those personal demons, and I understand now why you're being such a flaming hemmie.

You'd think someone with your class would feel the indignity of responding to such a horrible, horrible person, after all, who are you defending, EBAY? Meg Whitman? Apparently the irony of your responses is lost on ya, pity.

Respond at will -- I can only do my part and cease the flaming/response/flaming here... I will revisit my original thread when I trade the position.

arb.

P.S. And, FWIW, I'll be looking to pull $1.40 out of that position in the next two weeks -- I'll do the math for ya, it comes to: $56,000 before commish.

Oh, btw, I am talking to my buddy on the amex right now from the EBAY pit and he said there is no way in hell you got a 38 vol on that straddle today. He said they are trading on the 36 vol line right now. And I told him your postion and he said you are going to get f*cking killed. But good luck anyway.

 

[riskarb]

Quote from Maverick74:

Like I said, we'll what happens in two weeks. I clear through AMB Amro and trade through a market making firm. But hey, it's no Interactive Broker. That's where the big guys trade right. I've seen their trading platform and I can't believe for the life of me you trade on that platform. If you are swinging that kind of money, get on a decent platform for options.

Dude, I know you were trading with GreenTree, you told that to a buddy of mine in an ET PM, he asked me if I knew you from the board(ET).

And I didn't clear the EBAY trade thru IB, I clear SAGE for my equity positions, small world, eh? I clear my futs/futs options thru IB, nothing else goes through them.

arb.

 

[riskarb]

Quote from Maverick74:

Oh, btw, I am talking to my buddy on the amex right now from the EBAY pit and he said there is no way in hell you got a 38 vol on that straddle today. He said they are trading on the 36 vol line right now. And I told him your postion and he said you are going to get f*cking killed. But good luck anyway.

It was quoted 37.96% at the last trade -- which corresponded to the credit I received, maybe 37.5% Whatever you want, baby, the credit is what it is -- $6.40 avg. fill on the sell-side.

arb.

 

[Maverick74]

Quote from riskarb:

Dude, I know you were trading with GreenTree, you told that to a buddy of mine in an ET PM, he asked me if I knew you from the board(ET).

And I didn't clear the EBAY trade thru IB, I clear SAGE for my equity positions, small world, eh? I clear my futs/futs options thru IB, nothing else goes through them.

arb.

No, I trade through a market making firm called V-trader LLC. Your buddy that PMed me was asking about greentree. Get your story straight. Greentree does have a working relationship with V-Trader however.

 

[riskarb]

Quote from Maverick74:

Oh, btw, I am talking to my buddy on the amex right now from the EBAY pit and he said there is no way in hell you got a 38 vol on that straddle today. He said they are trading on the 36 vol line right now. And I told him your postion and he said you are going to get f*cking killed. But good luck anyway.

It was quoted 37.96% at the last trade -- which corresponded to the credit I received, maybe 37.5% Whatever you want, baby, the credit is what it is -- $6.40 avg. fill on the sell-side.

arb.

 

[riskarb]

Quote from Maverick74:

Oh, btw, I am talking to my buddy on the amex right now from the EBAY pit and he said there is no way in hell you got a 38 vol on that straddle today. He said they are trading on the 36 vol line right now. And I told him your postion and he said you are going to get f*cking killed. But good luck anyway.

Maverick -- do yourself a huge favor and RELAX... deep inhalation, slow exhalation... nice and slow, feel better now?

Now, to get to it... ANYONE with basic options knowledge can backsolve for the implieds using today's data and the known credit received -- which happens to be $6.40 avg on the sell, which was actually not a tremendous fill, but not terrible either.

Mav, this is 101-level stuff here, wtf?

And I thank my personal GOD that your buddy is the not the arbiter of my P&L, whew!


arb.