Volatility trading platform

Quote from Gammahedge1:

That is EXACTLY what I was looking for. Do you clear through anyone on their list? Thanks for the info by the way
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If you asking about ORC, it will run you close to $8k/month after you buy and install a high end server.
 
ok.. i have 20k account.. haha you guys are now talking way out of my league! just to ask you guys since you seem all to be in some form or another arbing/ market making/ vol trading.. whatever you wanna call it.. would it be bad of me to be short vol in calls against stock on way out of the money leaps? how in the world do i hedge for jumps? say i own 100 shares and i sell four calls with a delta of 25/or less and manage the trade... how to i hedge for a big jump up in the stock? i wanna just buy shares or deep itm calls.. and delta hedge with way out of the money calls/leaps.. take a look at this thread i created.. someone please
http://www.elitetrader.com/vb/showthread.php?s=&threadid=245185
i'm fairly new but a quick explanation of my possible risks and ways to deal with them would be great!
 
Quote from cdcaveman:

say i own 100 shares and i sell four calls with a delta of 25/or less and manage the trade... how to i hedge for a big jump up in the stock? i wanna just buy shares or deep itm calls.. and delta hedge with way out of the money calls/leaps.. take a look at this thread i created.. someone please
http://www.elitetrader.com/vb/showthread.php?s=&threadid=245185
i'm fairly new but a quick explanation of my possible risks and ways to deal with them would be great!
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You don't hedge the jump-risk. You avoid that risk by avoiding the sale of naked upside gamma. Long DITM calls aren't answer as they have no vega.
 
Quote from atticus:

You don't hedge the jump-risk. You avoid that risk by avoiding the sale of naked upside gamma. Long DITM calls aren't answer as they have no vega.
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so what your saying is i should trade in the complete other direction.. long vol by buying a put and trading in the underlying? not exactly that way.. but generally that way.. i

my question .. how would a company like bac jump up to say a 15 dollar strike over night... i have a feeling your gonna say.. "it happens"
 
Dont overcomplicate things. If you're bullish on something do a synthetic covered call (or sell a naked put or a put vertical if you're comfortable with your risk management). Short the front month call and buy a 75-80 Delta option 1-2 months out. Be careful with leaps since volatility will blow you out if it gets crushed. BAC doesn't really have enough premium to be interesting so you might want to look at something else with a little more juice.
 
Dont overcomplicate things. If you're bullish (or bearish) on something do a synthetic covered call (or sell a naked put or a put vertical if you're comfortable with your risk management). Short the front month call and buy a 75-80 Delta option 1-2 months out. Be careful with leaps since volatility will blow you out if it gets crushed. BAC doesn't really have enough premium to be interesting so you might want to look at something else with a little more juice.
 
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