trading VEGA

thank you very match for you full answer.BUT
Quote from cvds16:


if you expect vol to rise go long vega: you do this by buying options (preferably options with a large vega) while hedging your delta continously (= dynamic delta neutral hedging), if implied vol rises you will make a profit equal to your vega through the combined effect of the gain in rise in the price of the option and the profits from your dynamic hedging minus the loss in theta.

if you expect vol to decline go short vega: you do this by selling options while hedging your delta continously, if implied vol falls you will make a profit equal to your vega through the combined effect from the fall of prices of your options which in itself is a combined effect of the instant change in volatility and theta minus the loss of of your dynamic hedging.
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I probably not it is correct told earlier.I am sorry.I known how i may extract the profit from change of IV. BUt i don't know WHEN i must have entry in market. I want to hear a statistical method on which i can found this moment.

if you expect vol to rise go long vega: you do this by buying options (preferably options with a large vega) while hedging your delta continously (= dynamic delta neutral hedging), if implied vol rises you will make a profit equal to your vega through the combined effect of the gain in rise in the price of the option and the profits from your dynamic hedging minus the loss in theta.
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For example.
IF i expect IV to rise I buy two options and sell one futures that made a stredl. What for i could do dynamic hedging? I get the profit from delta.IF we sell IV then i agree.But what for we do this when buy IV?
I am sorry if i incorrect understood you.
 
Quote from jenek-cowboy:

... BUt i don't know WHEN i must have entry in market. I want to hear a statistical method on which i can found this moment...
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Well, obviously, noone is gonna tell you that, why should they!?


Quote from jenek-cowboy:

...For example.
IF i expect IV to rise I buy two options and sell one futures that made a stredl. What for i could do dynamic hedging? I get the profit from delta.IF we sell IV then i agree.But what for we do this when buy IV?
I am sorry if i incorrect understood you.
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It's kind of hard to do dynamic hedging when you are trading single contracts, as you don't have the ability to adjust your hedge.
 
Quote from jenek-cowboy:

I wanted to hear about how i may extract the profit from change of implied volatility of option.
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Quote from jenek-cowboy: I known how i may extract the profit from change of IV. BUt i don't know WHEN i must have entry in market. I want to hear a statistical method on which i can found this moment.
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Then again, like I presumed before you were not asking your question clearly, you were asking two different things. I gave an answer to your first question. You were really asking another question: 'how can I predict the direction of future vol or future implied vol' (it's even not too clear which of both questions you are asking, and there is a difference).
If I could give you the answer to that I would be making a fortune trading VIX-futures, I don't know it, and probably noone else does, it's like asking for a statistical method to tell you at what price the Dow will end the year: nobody really knows, all you can tell are educated guesses.

Quote from jenek-cowboy:I known how i may extract the profit from change of IV. For example.
IF i expect IV to rise I buy two options and sell one futures that made a stredl. What for i could do dynamic hedging? I get the profit from delta?IF we sell IV then i agree.But what for we do this in buy IV.
I am sorry if i incorrect understood you.
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You should reread all those books I advised you because by now it's obviously painfully clear that you have NOT understood them at all. You have no idea what dynamic delta neutral hedging is all about. It's not just doing one hedge but continously changing and adapting your hedge (think 200 options and 100 futures and continously adding or subtracting a future)

by the way, the example you give is not a stradle.
 
Quote from MTE:

Well, obviously, noone is gonna tell you that, why should they!?




It's kind of hard to do dynamic hedging when you are trading single contracts, as you don't have the ability to adjust your hedge.
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when i told about buing/selling IV i imply that we must formed a delta-neutral position
 
There is a difference between having a delta-neutral INITIAL position and CONTINOUSLY hedging it. See my previous post.
 
Quote from cvds16:

Then again, like I presumed before you were not asking your question clearly, you were asking two different things. I gave an answer to your first question. You were really asking another question: 'how can I predict the direction of future vol or future implied vol' (it's even not too clear which of both questions you are asking, and there is a difference).
If I could give you the answer to that I would be making a fortune trading VIX-futures, I don't know it, and probably noone else does, it's like asking for a statistical method to tell you at what price the Dow will end the year: nobody really knows, all you can tell are educated guesses.


You should reread all those books I advised you because by now it's obviously painfully clear that you have NOT understood them at all. You have no idea what dynamic delta neutral hedging is all about. It's not just doing one hedge but continously changing and adapting your hedge (think 200 options and 100 futures and continously adding or subtracting a future)

by the way, the example you give is not a stradle.
More...
Simply we probably understand the notions on miscellaneous
 
Quote from jenek-cowboy:

Simply we probably understand the notions on miscellaneous
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sorry but once again this is not an english sentence, I don't understand at all what you are saying
all I can say is trading vol on options is not really simple, it's complicated.
 
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