tag:blogger.com,1999:blog-18657157.post8598267019884469773..comments2024-02-10T02:17:57.075-08:00Comments on b z b t r a d e r: Playing Well with Othersbzbtraderhttp://www.blogger.com/profile/11607843481812042367noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-18657157.post-58866481231256599252009-08-20T19:51:58.627-07:002009-08-20T19:51:58.627-07:00Qs and SMH, huh? Why those two? Is it an implied...Qs and SMH, huh? Why those two? Is it an implied vs. real volatility issue or something else?<br /><br />I was thinking of selling pairs like SPY vs. dollar-indexed instrument. Pairs where there is a strong inverse correlation. This way you could sell twice as many puts without significantly increasing your risk... in theory, at least :) .Anonymousehttps://www.blogger.com/profile/08314518246577222610noreply@blogger.comtag:blogger.com,1999:blog-18657157.post-75819048715647415202009-08-20T18:48:28.997-07:002009-08-20T18:48:28.997-07:00Death.......,
Selling puts on the Qs and SMH expir...Death.......,<br />Selling puts on the Qs and SMH expiration week is one of my favorite strategies, especially into a rising market. It can get a bit scary sometimes but the vast majority of the trades are easy money. Not for everyone and selling farther out strikes is the safest tactic IMHO. I may do a post on what setup I look for in a future post.bzbtraderhttps://www.blogger.com/profile/11607843481812042367noreply@blogger.comtag:blogger.com,1999:blog-18657157.post-51228807966325385612009-08-20T12:43:54.632-07:002009-08-20T12:43:54.632-07:00I wonder if that applies across many different typ...I wonder if that applies across many different types of equity classes and asset classes? If so, you could use the method broadly across a wide range of relatively uncorrelated asset classes (granted, harder to find in this market) to smooth out the returns.Anonymousehttps://www.blogger.com/profile/08314518246577222610noreply@blogger.comtag:blogger.com,1999:blog-18657157.post-69431337083283173682009-08-20T08:16:17.358-07:002009-08-20T08:16:17.358-07:00TopTick,
Absolutely right! Not for the faint of he...TopTick,<br />Absolutely right! Not for the faint of heart, especially in today's surprise driven markets.bzbtraderhttps://www.blogger.com/profile/11607843481812042367noreply@blogger.comtag:blogger.com,1999:blog-18657157.post-37034414309427759422009-08-20T07:36:51.767-07:002009-08-20T07:36:51.767-07:00The CXO entry you link reviews a paper on abnormal...The CXO entry you link reviews a paper on abnormally large returns for shorting volatility (selling puts). The fact that it was published 9/10/2007 is like the magazine cover theory: when everybody knows it's a sure thing, watch out! They don't call that method 'picking up nickels in front of a steam roller' for nothing. <br /><br />Thanks again for publishing your work.Toptickhttps://www.blogger.com/profile/03379288226241889428noreply@blogger.com