The TLFs INSIDER TRADER!

[azza33]

(PigDogg @ May 10 2010,14:11)

(azza33 @ May 08 2010,20:12) Short volatility

I think you're saying short sell the volatilty index.

But there is an ETN that tracks "short term" volatilty.

Maybe things will calm down who knows.  But despite this weeks turmoil VXX which sort of tracks the VIX is lower than during all of 2009.  

http://finance.yahoo.com/q/bc?s=VXX+Basic+Chart&t=2y

Can short vol in the eto market- just be careful of the other Greeks(not the european sort)

individual share vol should be much higher than any index.

[manarak]

"other greeks" is implying the vega, as the price variation for 1 point of vola is called, is a greek too... wrong!

it's always one of the best jokes!

[azza33]

Spot on - vega is the first partial derivative of price with with respect to volatility!!

And of course just because the vega position is correct doesn't mean your delta neutral, and if you are delta neutral, how's your gamma looking?  

damn I think pd method may be easier!!!

[manarak]

And of course just because the vega position is correct doesn't mean your delta neutral, and if you are delta neutral, how's your gamma looking?

Now you're talking nonsense!
:-)

I'll tell you as much: your gamma will be positive if you're an options buyer and negative if you're a seller.
With increasing vega, the absolute value of your gamma will rise.

(licensed derivatives trader here)

[azza33]

Are you talking individual options or a portfolio??

[azza33]

(manarak @ May 10 2010,16:33)

And of course just because the vega position is correct doesn't mean your delta neutral, and if you are delta neutral, how's your gamma looking?

Now you're talking nonsense!
:-)

(licensed derivatives trader here)

But it's just fun to talk in riddles.

Just curious ... Do you trade the derivative markets on your own account?
If so, how are you finding it?
(90% of eto expire worthless so it's a tough gig)

[PigDogg]

European markets having a great day today. France up 8%!

[azza33]

Wow .. just checked bloomberg....amazing moves going on.... talk about emotional rollercoasters  

US futures are booming also

[manarak]

(azza33 @ May 10 2010,16:58)

(manarak @ May 10 2010,16:33)

And of course just because the vega position is correct doesn't mean your delta neutral, and if you are delta neutral, how's your gamma looking?

Now you're talking nonsense!
:-)

(licensed derivatives trader here)

But it's just fun to talk in riddles.

Just curious ... Do you trade the derivative markets on your own account?
If so, how are you finding it?
(90% of eto expire worthless so it's a tough gig)

I don't trade professionally anymore.

It was a great job until I accepted to be "promoted" into management.
At this point my life turned into shite.

About what you asked about portfolio or single option, what I said about gamma is true for single plain vanilla options and for portfolios of such options, though there can be exceptions if news or corporate actions are expected by the market.


I sometimes still do commodities, options and futures for my personal account.

Mostly:
- compounded option strategies (bull/bear spreads, straddles) with limited risk
- rarely straight futures when I think something is going to move, but this is stressful (250 USD per S&P point, I don't do minis, sorry)
- covered calls, which are always great performance boosters in quiet markets
- short puts: I do that mostly for blue chips I loosely want to buy. I sell puts with strike approx 5% under the current market and let them run. Result is either that the options expire worthless (and in this case I make money) or that the stock falls and I get exercised, in which case I still keep the option premium and I get the stocks 5% lower than I initially would have bought them.

The problem with all option strategies is that for big profits the odds are stacked against you, and for making small profits you need big volume (= big money), otherwise the spreads and commissions kill your profit.


Today I am mostly in AUD and CAD precious metals and oil-related stocks.
Doing great, especially when I count in EUR

some examples:
LYC.AX (bought at 0.24 average)
PRU.AX (bought at 0.68 average)

[manarak]

(azza33 @ May 10 2010,17:38)

Wow .. just checked bloomberg....amazing moves going on.... talk about emotional rollercoasters  

US futures are booming also  

the markets will calm down once they realize someone will eventually have to pay for that trillion...

It is also funny to see that while the EURO regained approx. 2% against the USD, it only gained about 1% against CHF, and almost nothing against AUD and CAD!

My point of view is that this trillion only maintains the fan in upright position after the shit has hit it, preparing for more to come.

[azza33]

(manarak @ May 10 2010,18:33) some examples:
LYC.AX (bought at 0.24 average)
PRU.AX (bought at 0.68 average)

Couple of very nice picks there  

The problem with all option strategies is that for big profits the odds are stacked against you, and for making small profits you need big volume (= big money), otherwise the spreads and commissions kill your profit.

These commissions in oz are crazy - these days i mainly trade the warrant market, whilst you can only employ vanilla positions, it has low transaction costs and good liquidity.

- covered calls, which are always great performance boosters in quiet markets

A little known strategy for the average punter but a lovely way to print money for long term holders of blue chip shares.

[manarak]

eh, just look at PRU.AX...

up 10% at 2.22 AUD

[Bumpa STIKKA]

Underpriced and worth a punt to me are...

LGEN (79p)
DEB (66p)
UNIQ (17p)
CMS (23.5p)

[azza33]

(manarak @ May 17 2010,17:35) eh, just look at PRU.AX...

up 10% at 2.22 AUD  

not bad on an awful day in oz

[thaibound]

(Snick @ Jun. 11 2009,10:14)

(katoeylover @ Jun. 11 2009,22:35) I always was led to Believe Bill Gates was the Devil Incarnate to all you computer buffs.

Now you all make money off his stock....

Amazing!!  

Not me --- Not me buying the stock --- I certainly believe he is evil (which I normally like, but not this case).

I bought Apple at $100. $140 right now

As for microsoft stock, they just laid off 5000 people, and canceled 12 products. They will probably have to offer a cheap upgrade on windows 7, since so many people got burnt on Vista. And the new netbooks computer will start shipping without windows (linux or android based), and thats the largest growing segment of the industry.
I see the stock stagnating around 30

thought i'd give mr. snick his due here. as of today his AAPL is north of $250 and, as he predicted, stogie's MSFT still hovers at $28.50.
not that stogie hasn't seen a nice profit anyway-- i'd take $23>$28 in less than a year with *all* my holdings , but....good call snick.
so what next?
while i'm waiting for the reds and yellows to blend into the peaceful aum of orange so i can return to lb heaven, i'm obsessing with my pennies. and penny stocks.