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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Mark Z who wrote (4844)9/29/1998 3:25:00 PM
From: Patrick Slevin  Read Replies (2) of 44573
 
<Today VIX was going to jump no matter>

Yes, they love that stuff. But in all fairness they are making it expensive because of the implied risk. Not many have the inclination to sell short options in the face of a possible major move, direction uncertain.

And of course, such a position has to be hedged with an off-setting position in Cash or Futures making the entire thing dicey in a fast market.

Did you note what the volumes were during any particular span of time? I would not be surprised to find that simple 10 lots were helping to push it a half point or more at a clip.

Nice work if you can get it though. I know a group in London that has a computer program that just spits out butterfly spreads to trade all day while they try to make serious money trading the Bund. They make their bottom line trading Butterflys and their gravy on the spreads in the Bund.

Pretty easy for them, as the Bund is traded right across from the options pit.
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