Timeline for Given markets usually fall fast and rise slowly, are there trading mechanisms to take advantage of this?
Current License: CC BY-SA 3.0
8 events
| when toggle format | what | by | license | comment | |
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| Dec 1, 2011 at 21:00 | comment | added | Ray | Perhaps you can generate another question to help clarify this subject further. I'd love to know (i.e. please comment here, if you do), thanks. | |
| Nov 30, 2011 at 0:53 | comment | added | Lliane | Sure you can buy deep OTM Puts and sell slightly ITM Puts, but it doesn't match any mathematical model. Also, you're probably gonna pay a stupidly high premiums on those deep OTM Puts, which explains why Black Swan funds returns are lame except for the really short term view. | |
| Nov 30, 2011 at 0:47 | comment | added | Lliane | I don't see how it could be priced in, doesn't make any sense to me. The risk free interest rate is something that is priced in, not the rise in volatility when things go bad. | |
| Nov 29, 2011 at 20:12 | comment | added | Ray | Thanks Lliane. Did you see Tal's comment above, also DKM's answer below? Thoughts? | |
| Nov 29, 2011 at 9:06 | comment | added | Lliane | Strike = 90% of Forward (Discounted Spot) | |
| Nov 28, 2011 at 16:35 | comment | added | Ray | Can you please clarify the term "90% puts and calls"? | |
| Nov 28, 2011 at 14:34 | history | edited | Lliane | CC BY-SA 3.0 |
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| Nov 28, 2011 at 14:18 | history | answered | Lliane | CC BY-SA 3.0 |