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Synthetic straddles on pit traded futures contracts?
- Thread starter steve3052
- Start date
Quote from xflat2186:
No problem you can always trade any underlying vs either straddle as long at the underlying is open
You took issue with AH availability. It's an issue for me if we're in free-fall and I can't wait for morning. I had an issue with e-cbot bond options in which the natural wasn't quoted with no RFQ. No put market but the calls [for some reason] were 5-wide [atm]. I covered with the synthetic but the natural was unavailable.
I am not taking issue with the availability of the underlying, nor are we or were we talking about bonds or any bond product.
I believe the topic was synthetic vs. natural straddle and I / we concluded it does not matter when trading the underlying in off hours, so long as you can trade the underlying.
I believe the topic was synthetic vs. natural straddle and I / we concluded it does not matter when trading the underlying in off hours, so long as you can trade the underlying.
Quote from xflat2186:
I am not taking issue with the availability of the underlying, nor are we or were we talking about bonds or any bond product.
I believe the topic was synthetic vs. natural straddle and I / we concluded it does not matter when trading the underlying in off hours, so long as you can trade the underlying.
You concluded. I earlier stated it matters if I am trading ES index products, as an example. NQ as well. The options in these products do not trade AH. I can cover my futures an let my short calls ride into an event. The bonds were simply another example, in this case, utilizing the synthetic to offset.
Sure, you can trade gamma with spot AH, but not (always) vega.
Again the original topic was synthetic vs. natural straddle. I said it does not matter which straddle you can always trade the underlying to take profit or stop out. Are you saying something other then that? Thats the crux of the question here.
I dont believe we ever were discussing trading vega ah
I dont believe we ever were discussing trading vega ah
Quote from xflat2186:
Again the original topic was synthetic vs. natural straddle. I said it does not matter which straddle you can always trade the underlying to take profit or stop out. Are you saying something other then that? Thats the crux of the question here.
I realize they're equivalent.
I showed an example in which the synthetic allowed me to cover my position in which the natural wasn't offered. You took exception to that comment that we're not talking bonds, who cares what the product. I could've covered my spot and let my bond calls ride w/o the call-market. I realize it increases my g/v exposure. The point is that often gamma, but not vega, can be traded.
If the options are not available I can trade out of spot leaving the naked option. That was my contention from my first post on this thread.
Not sure why you're beating this dead horse.
The original question was never about being able to trade vega in afterhours. The point is you can trade the underlying vs the synthetic or the natural straddle exactly the same way. I dont believe we were ever discussing the options trading in afterhours.
My comment about the bonds was simply pointing out we were discussing index options originally.
I believe the horse is dead at this point.
The original question was never about being able to trade vega in afterhours. The point is you can trade the underlying vs the synthetic or the natural straddle exactly the same way. I dont believe we were ever discussing the options trading in afterhours.
My comment about the bonds was simply pointing out we were discussing index options originally.
I believe the horse is dead at this point.