Urgent Message From Rennick

Quote from William Rennick:

FRI. 5/2 1:10 pm dow- 4

After nailing the Morning call better than anything Roger Clemens did to that 15 year old, the mighty "Ball" remains NEGATIVE calling for further WEAK Market action this afternoon... SELL ANY RALLY ATTEMPTS you crazy SOB's!


Rennick out:cool:
More...

What happened to you Rennick? Why you did not open shop a bit earlier. Well you may have been OUT! Great stuff buddy! :)
 
Quote from William Rennick:

FRI. 5/2 1:10 pm dow- 4

After nailing the Morning call better than anything Roger Clemens did to that 15 year old, the mighty "Ball" remains NEGATIVE calling for further WEAK Market action this afternoon... SELL ANY RALLY ATTEMPTS you crazy SOB's!


Rennick out:cool:
More...

Good confirmation. I was hoping to hear that from you! :)
 
Quote from MAESTRO:

I am usually short options over weekend. I sold my long puts and I am waiting to sell 1280 June puts to be short puts. I want 7.50 for them.
More...

Personally I am not a fan of shorting naked puts over the weekend, especially if you’re selling to open late on a Friday. The pits already begun pricing the weekend decay into the options earlier in the day. Not only that you’re assuming the worlds geopolitical risk over the weekend. Vols have come in so hard in the last 10 days you’re selling 23% vol in the June 12ish delta put, that’s not very attractive from a implied volatility standpoint.

If you want to be long delta or short vega over the weekend there are better ways.
 
Quote from xflat2186:

Personally I am not a fan of shorting naked puts over the weekend, especially if you’re selling to open late on a Friday. The pits already begun pricing the weekend decay into the options earlier in the day. Not only that you’re assuming the worlds geopolitical risk over the weekend. Vols have come in so hard in the last 10 days you’re selling 23% vol in the June 12ish delta put, that’s not very attractive from a implied volatility standpoint.

If you want to be long delta or short vega over the weekend there are better ways.
More...

Thank you. I am never naked though. It's against our fund's policy. I usually do Christmas trees over the weekend.
 
Quote from MAESTRO:

Thank you. I am never naked though. It's against our fund's policy. I usually do Christmas trees over the weekend.
More...
an xmas tree is just a variation on a ratio spread not that big a deal. You commented that you were interested in selling the June 1380's I didnt see anything about a spread so I assumed naked.
 
Quote from xflat2186:

Personally I am not a fan of shorting naked puts over the weekend, especially if you’re selling to open late on a Friday. The pits already begun pricing the weekend decay into the options earlier in the day. Not only that you’re assuming the worlds geopolitical risk over the weekend. Vols have come in so hard in the last 10 days you’re selling 23% vol in the June 12ish delta put, that’s not very attractive from a implied volatility standpoint.

If you want to be long delta or short vega over the weekend there are better ways.
More...

Good stuff guys,, can we get riskarb in here to translate please.:cool:
 
Quote from xflat2186:

an xmas tree is just a variation on a ratio spread not that big a deal. You commented that you were interested in selling the June 1380's I didnt see anything about a spread so I assumed naked.
More...

Yes, you are right. I am usually focused on the last naked option that I normally sell at 2 STDs out. I did not mention the front pair, you are correct. I also do not use the standard ratios and I always try to short Vega on the rising markets using the dips. Theta usually kicks in at around 2pm and I normally have my weekend positions before that.
Cheers,
MAESTRO

P.S. My last puts are not at 1380, they are at 1280 at 7.5 pts premium.
 
Simply put, selling options late on a Friday wont net you the weekends decay since the market will start pricing days ahead earlier in the day Friday. Therefore you’re assuming all the risk for the short options over the weekend without receiving the benefit of the time decay in your favor over the weekend.

Geopolitical risk is a simple concept too. You can pain any number of scenarios which would make the markets open significantly down, meaning the SPX opening down ah la black swan event, but its not easy to find one which would force the market to open up huge. When you’re selling those naked puts you assume 100% of that geopolitical risk for very little protection or premium.

Implied volatility in the SPX has been dropping steadily for 10 days as evidenced by the VIX, if you were interested in selling some vega ( implied volatility ) why do it now with the VIX at under 19 when you could have sold it with the vix 24 or more not long ago?
 
Quote from MAESTRO:

Yes, you are right. I am usually focused on the last naked option that I normally sell at 2 STDs out. I did not mention the front pair, you are correct. I also do not use the standard ratios and I always try to short Vega on the rising markets using the dips. Theta usually kicks in at around 2pm and I normally have my weekend positions before that.
Cheers,
MAESTRO

P.S. My last puts are not at 1380, they are at 1280 at 7.5 pts premium.
More...

My apologies, for my misreading your post.. good luck getting a 1280 put off at 7.50, I would say we'll all have a lot of opportunity to trade between here and that level.
 
You must log in or register to reply here.
Back
Top