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SLV Straddled Here
- Thread starter shortie
- Start date
This is pretty funny. Margin req's didn't increase due to volatility. They increased because the higher silver goes the more people will flock to it and use it as a currency instead of the paper the Fed hands out. The Fed had everything to do with this.
Quote from shortie:
IB bulletin:
Margin Increase: Silver Derivatives
In light of the recent unprecedented volatility in silver markets, the exchanges that offer trading in silver derivative contracts are increasing the margin requirements on these products. In an effort to adequately address the inherent risk resulting from this volatility, we are increasing margin requirements on silver derivative contracts to a level exceeding that which the exchanges are implementing.
Quote from sle:
sorry, i misread your postions - it appears you are short front gamma and long june strangles a 1:1. Out of curiosity, why did you do them in this ratio?
all done by eye, not using any formulas here. basically, i wanted wings far away so that they don't cost too much and at the same time limit my losses to a reasonable amount in case of a large move in SLV.
That's just silly...Quote from the1:
This is pretty funny. Margin req's didn't increase due to volatility. They increased because the higher silver goes the more people will flock to it and use it as a currency instead of the paper the Fed hands out. The Fed had everything to do with this.
Quote from sle:
What was the exact view you where trying to express?
my bet is that the front month volatility will diminish so i am short May straddle. i expect that June volatility won't be affected as much and my Long straddle does not decay too much.
i am also betting that SLV will trade ~May strikes around Expr.