I've never seen the spreads like these, were they this wild during the 2008 crash?
The options market seems untradeable now
- Thread starter floho
- Start date
87 was much wilder...
Forced liquidation,conversions trading for 100 dollar + credits in the XMI pit..
Straddle markets were hundred point wide
IThis is nothing
Forced liquidation,conversions trading for 100 dollar + credits in the XMI pit..
Straddle markets were hundred point wide
IThis is nothing
Having fun trading stocks like HTZ, PENN, CAR, RCL,HLT, NCLH and MAR. Why not follow highly liquid s
In one of the Market Wizards books there was a story of someone making over $30 million off a $400,000 Index super cheap Puts bet in 1987. He quit after making his sister and mother millionaires.
Lol...I wish..but reversals/conversions typically traded at .60 to a dollar and with the American cash settled exercise feature,one could pick up an extra dollar when futures traded at a discount and you exercised calls and bought futures.
and if im,not mistaken,the XMI was trading around 250,and straddles went 150-200 bid..
I also received a letter from the AMEX trying to adjust prices on puts sold. Needless to say,I left the exchange.
and if im,not mistaken,the XMI was trading around 250,and straddles went 150-200 bid..
I also received a letter from the AMEX trying to adjust prices on puts sold. Needless to say,I left the exchange.
Back then, I bet straddles were 25 points wide in a quiet market
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If I have convictions, options provide convexity. The negative of course is sky high IV, but are they expensive because of high IV? It depends as someone told me before, it was priced in.
If the market is wrong, the high IV may actually be cheap. I also used the term structure to find a T with reasonable IV. Often, I run my VBA excel BSM model to see if my choice makes sense. If my logic is wrong, I appreciate your comments.
On some trades you are absolutely correct, I ended up buying the underlying.
I probably should just stay out but I couldn't help myself, things looked so cheap: BRK PE=4.8, ABBV PE=12 yield=6.9%, ALXN PE=7.5 !!!
Regards,
Is that edge ? You mean you cant lose on that trade?
Rare the computers dont eat any kind of trade thats free money before you can
Show us something today so I can parse it and see if you're bs or not
99 percent sure you can not lose,but I honestly did not expect it to go to 3.80.And I sold a decent portion of the position at lower prices.But you should doubt me.Alot of guys are full of shit.With that said,The bots can not do what I do.
Here is another trade that is "risk free",but I put it on for a 10 cent credit..SPY 5/15 291-327 1x3 call spread...Its a wussy trade,but on the next leg up,it will explode...You also have to have PM..
All I was trying to say is the "edge" was massive and the bid offer waqs a small cost of getting edge
Here is another trade that is "risk free",but I put it on for a 10 cent credit..SPY 5/15 291-327 1x3 call spread...Its a wussy trade,but on the next leg up,it will explode...You also have to have PM..
All I was trying to say is the "edge" was massive and the bid offer waqs a small cost of getting edge
my definition of edge is not (i will probably make money )
edge is , I WILL make money
edge is , I WILL make money
Yep. There was no VIX back then. Some have tried to calculate what it would've been and it was a record high--even higher than this crash.