Disliked{quote} 3c was a .....a .....deal....? http://www.cnbc.com/2015/11/24/the-4...&doc=103191525Ignored
Fireworks are fun ... as long as you don't blow your fingers off.
BELLA SYSTEM. Let's try it, let's improve it! 118 replies
Let's Trade The News V 0.4 ! 479 replies
Any Options, Bull Options & Option Bit 39 replies
Let's Trade The News! 46 replies
Let a trade develop? 17 replies
Disliked{quote} 3c was a .....a .....deal....? http://www.cnbc.com/2015/11/24/the-4...&doc=103191525Ignored
DislikedI thought about a similar play post NBG "earnings". I think it's probably a good thing that Greece no longer has a majority stake in NBG and that its stake in a number of other banks has been pared back significantly. But, hey, it's a lottery trade ... . That whole foreign investment firm stake thing might help them clean house ... .Ignored
DislikedSUNE, lotto ticket trade idea of the day, crazyass superbull, sell the Apr $2.5/$1.5 vert puts for 50c and buy the Apr/Jan'17 $10 calls calendar for 32c....Apr a long time to tie up $1.00 margin, but 50c back on it is fine....SUNE maybe heading for BK, but that is gonna take some time & there will likely be some bottompicker action on it IF (big IF) the wider market rallies into Q1 2016 and oil rallies too.....if you don't get much out of the $10 calendar, let the Jan'17 calls run and hope for a miracle rebound....I could see SUNE working out some...Ignored
DislikedGot a touch greedy on the DE earnings play. Volatility popped after open and the setup I had anticipated was at one point going for 1.50 credit plus/contract. But noooo, I waited until toward the end of the session, by which time vol had ebbed -- filled for a 1.03 credit. Tomorrow's play: FIT Jan 15 21/33 short strangle for a 1.48 credit POP%: 72% Max Profit: $148/contract Buying Power Effect: ~$268/contract BE's: 19.52/34.48 Good premium for an under-$50 underlying; that being said, I doubt that I'll get filled at the mid (not the most liquid options...Ignored
DislikedHey TF & ZS... I had plenty of various shit to do, so my trading was very very thin. I have a question about FX hedzing. I know a man who has a developed bussiness, and he is importing various raw materials needed for production. He is paying that in USD, so for example, he signs contract with Chinese manufacturer today, and pays agreed sum in USD after 90 days. He has euros... so how to hedze that USD transaction? Should he "lock" the curent eur/usd price with simple buying the same amount of euros on spot FX? Should he buy ER futures? Or hedze...Ignored
Disliked.... In his particular case, he wants to hedge against a downturn in the EURUSD exchange rate, since that will mean that he has to fork over more Euros to complete the transaction since they will be worth less. An upturn would actually benefit him (as he would have to pay fewer Euros to complete the transaction), so he doesn't need to hedge against that.Ignored
DislikedMe personally, I think taking a spot position is expensive "insurance," so I would go the futures options route. You can naturally do a short call -- if price moves down and is below the short call at expiry, he keeps the credit received, hedging some of the down move. The alternative would be a long put -- if price moves down, the price of the long put increases in value, again hedging some of the down move. Part of the equation as to which option to choose and at what strike is generally how much the person wants to pay for the "insurance" and...Ignored
Dislikedlooking at short SPY vert calls - Jan $214/$217 - for $0.85 or better......Ignored
DislikedI was looking at pretty much the same... /ES Jan 2140/2170... about $8.00 CR now, with /ES around 2089. Vol play? Next week is packed with news... China, Yellen, ECB, NFP, OPEC... Could the old long vol trade work now? So much coins trown at that direction... With weeklies... next week expiry?Ignored
Disliked{quote} Yes, you are absolutely right about that, I made a mistake in my post. {quote} To tell you the truth, buying the futures puts is also expensive... For example one contract EUR March 2016 - strike 1.06, is currently about 3,650 usd... So, for hedging a USD 2M, how many of these do you need? Multiplier on Globex EUR futures and their options is 125,000. So you would need 15 contracts then (125,000 x 1.06 = 132,500 and 15 x 132,500 is about 2M). So, 15 x 3,650... the sum is almost a 3% of that USD 2M. Is that simple math good or not, idk? OR......Ignored
Disliked{quote} A complicated affair ... . Most of the time, it's just too expensive to hedge completely such that you won't take a hit on at least some adverse movement. With the forex, you'll need to look at the swap rate for a short position (adding to the complexity of the thing); the swap rate will tell you what you will pay or be paid for merely holding the position. Last time I checked, you get paid some small amount for holding a EURUSD short (which is long dollar), but were you to hold $2M worth of EURUSD short (about 20 standard lots), that could...Ignored