Keyan Li @KeyanLi7
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Jim Simons breaks down one of the best techniques in trading (using uncorrelated signals):
@drbillsz MMs do not make money by being short options, they make money on your bid/ask spread, they hedge options they sell with as closely related options as possible they can find to buy
@graystoke @Dmcquiston6 any of the above, depends what's cheap
I’ve noticed that when people on this app (especially on fintwit) display reactive, unhinged, emotionally driven behavior, it usually signals one of two things: they either never managed real money, or they were not very good at it when they did. Back on the trading floor, I…
I have seen options move from $0.02 to $20 in just 24 hours on a single stock earnings beat. I have seen stocks rally from $10 to $2000 in a matter of days (HKD). I have even seen someone pay $1.3 million for a digital image of a rock. In financial markets and especially in…
Risk adjusted returns don't pay for the lavish office space,management offsite, and the subpar swag they giveaway... Scale your position to infinity and worse case you blowup and move to the shop nextdoor I personally know PMs who's done that so many times it's mind-blowing
OK, this is gonna be a vol modeling 101. Nothing too fancy and quanty, just a simple intro of the concepts and idea behind FWIW - i'm not trying to sell sht, just help junior and novice practitioners understand this world a bit better Let's dive in..
@bennpeifert @JessicaNutt96 for the entry level traders: wilmott.com/wp-content/upl…
This is my quant. My quantitative (It's really good, you should read it) substack.com/home/post/p-17…
$VIX futures to trading rich versus fair value (i.e. where VIX futures should trade based on the level of SPX forward starting variance swaps, less a convexity adjustment given the futures payouts are linear and not convex). This is particularly pronounced further out the curve,…
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Good morning. I'm on a posting break but everyone is sending me this so just a brief explanation. 🖤 The headline is correct, but the implications are not. The VIX complex is very expensive on a relative basis right now and hedge funds are short it against other vol exposures.
Good morning. I'm on a posting break but everyone is sending me this so just a brief explanation. 🖤 The headline is correct, but the implications are not. The VIX complex is very expensive on a relative basis right now and hedge funds are short it against other vol exposures.
I have a few posts on this, but I continue to stand by the fact that there’s great value in longer dated index Vega, than what’s going on in the front of the term structure. A lot of that vol continues to get shoved down due to the increasing size of structured product…
I have a few posts on this, but I continue to stand by the fact that there’s great value in longer dated index Vega, than what’s going on in the front of the term structure. A lot of that vol continues to get shoved down due to the increasing size of structured product…
If you buy options blindly, you can get destroyed for many reasons. Right now, people may see the VIX as “cheap,” but if you’ve been buying 1–2M VIX calls, you’ve been getting crushed every single day as the curve continues to cave in. It’s actually not cheap at all. When we…
If you buy options blindly, you can get destroyed for many reasons. Right now, people may see the VIX as “cheap,” but if you’ve been buying 1–2M VIX calls, you’ve been getting crushed every single day as the curve continues to cave in. It’s actually not cheap at all. When we…
The best macro trader I know, and objectively one of the top hedge fund managers on the street—has been known to tell pension boards, “I buy what’s going up and sell what’s going down. What else do you want me to say?” The absolute only thing that matters in this business.
The best macro trader I know, and objectively one of the top hedge fund managers on the street—has been known to tell pension boards, “I buy what’s going up and sell what’s going down. What else do you want me to say?” The absolute only thing that matters in this business.
ok this is a good one and self contained enough to do on a recovery pton ride. the tl;dr is that large sophisticated prop firms and hedge funds running volatility arbitrage strategies in listed options effectively look like market makers in how they execute and manage positions.
ok this is a good one and self contained enough to do on a recovery pton ride. the tl;dr is that large sophisticated prop firms and hedge funds running volatility arbitrage strategies in listed options effectively look like market makers in how they execute and manage positions.
correct. a properly big bubble requires a compelling narrative that has at least some truth to it
correct. a properly big bubble requires a compelling narrative that has at least some truth to it
@dampedspring dollar delta is generally quoted as a market value equivalent, e.g. $100 million delta = pnl of $1 million per 1% move. if you have some other convention you prefer, that's fine, this is not a question about unit conventions
Good read by @bennpeifert of QVR about yield ETFs like $XYLD $QYLD $JEPI $MSTY etf.com/sections/featu…
Great minds discuss ideas; average minds discuss events; small minds discuss people; idiots discuss local real estate; and retards discuss health hacking. (Completing Eleanor Roosevelt) Version 2.

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