Cboe SKEW has a greater weight to OTM strikes and is at 145...which is quite elevated compared to the past 20 years. Barclays SKEW is not as elevated because they measure more near term stikes. The single name skew is low due to the call buying, but the index skew is elevated...so what is wrong with my conclusion that Softbank bought single name calls and index puts?
SoftBank is the manipulator
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Cboe SKEW has a greater weight to OTM strikes and is at 145...which is quite elevated compared to the past 20 years. Barclays SKEW is not as elevated because they measure more near term stikes. The single name skew is low due to the call buying, but the index skew is elevated...so what is wrong with my conclusion that Softbank bought single name calls and index puts?
So here's the mechanism. Buy upside calls from ibanks -> banks buy D1 and begin to layoff risk in listed vol-buys which takes weeks/months to accomplish.
How the bloody fuck did this go on for as long as it has without it leaking before the FT article? Protecting their books so they could layoff the risk to the sheep and then the genie is out of the bottle.
How many sell-side upgrades have we seen in tech? They front-run that with impunity.
Chinese Wall only works when they want it to work.
How the bloody fuck did this go on for as long as it has without it leaking before the FT article? Protecting their books so they could layoff the risk to the sheep and then the genie is out of the bottle.
How many sell-side upgrades have we seen in tech? They front-run that with impunity.
Chinese Wall only works when they want it to work.
If I am a bank buying D1 delta hedging, I would want to buy some tail hedges for my long book.
It was on zerohedge the day before
Absolutely, when the origin is an unknown... it's all that matters. He's fucked now, boy.
Softbank stock only down -3%
He was long upside tail. So that's why tails were bid driving single-name skew to absurd levels.
Meaning tails were up +5 over ATM. The 25D risk-reversal was up 15 handles (GOOGL). We've been chatting about it for weeks on bbg and discord.
How do I get on the chat on bbg or discord? I have both