Plain Vanilla Options Trades.

[ducati998]

No it's not a black swan, not even close. Down 2% in a single day is not that unusual. It's happened 141 times in the past 23 years, or 6 times a year, on average.

What should be noted is how implied vol has spiked. Last night the front month ATM was trading at 10.4%, it's now 14.3% as I type. The margin on short puts, especially far dated OTM options, will go ballistic tomorrow. Those that cannot stump up the dosh will be closed out - at market.

If anybody cares to post up the open positions of you know who, I'll post up the margin requirements, before and after todays slide.

And then of course he cannot complain that we did not tell him everything.
Clear as a winters morning, screaming it was.

jog on
d998

 

[TWI]

"It is not the simple statement of facts that ushers in freedom; it is the constant repetition of them that has this liberating effect. Tolerance is the result not of enlightenment, but of boredom."
Quentin Crisp

 

[Profitaker]

Ok, the margin at last nights close was as follows;

Total margin required £ 56,863 as at last night.

The new margin parameters are out about 8 o'clock tonight, I'll post them up then.

Should be interesting

 

[ian]

Should we pass the hat round?

 

[barjon]

er, let's let the market do most of the talking shall we.

 

[ducati998]

Market seemingly is.
Soccy is conspicuous by his absence.

Obviously he needs to monitor the removal men as they empty the Chelsea flat.
He'll be eating in the cafe as a bona fide patron if we have a May style correction, forget about going undercover.

Black Swan, Roast Duck.............how's the Pie-n-Mash?

jog on
d998

 

[dc2000]

just thought I would add the Dow has now passed outer zone so looking for FTSE and Dow to rearm shorts working target this would give the FTSE march futures 6125 tomorrow

 

[bluetipex]

Dax has made a nice down move today too!

Lovely.

287 points down so far....

 

[Priceman]

Socrates will be back, maybe he'd already closed out those positions...CYOF has popped in to tell us he knew about it but not how he dealt with it. Let's wait and see...

 

[Hook Shot]

Bloody Chinese markets.

It's not so much Black Swan...

More like Peking Duck.

Greenspeak perhaps......... delayed effect ??

 

[jacinto]

well, to be fair, he did say 80ish % would expire worthless, so suggest to give the benefit of the doubt.........though dont look good.

 

[ducati998]

Seriously though, counter trend options still expire without being exercised.

It's not a white knuckle ride i would like to be on though.

Bit too nerve shredding for me.

Good luck with it all, Socs.

Past needing luck.
He has now moved into paramedic resussication, blood transfusions and the minister is on standby.

Obviously the glare of the headlights illuminated the road ahead.
Too bad he was standing in the road when the lorry hit him.

jog on
d998

 

[ian]

I wonder what the excuse will be...he sent along the 'mini-he' to pretend all is well so to buy him some time...

 

[dc2000]

to be fair its only the front month trades that are at risk at the mo the May expiry will get an exit though Soc may need a brandy or two for the size of the margin

 

[ducati998]

Thing is 998, i've never believed Socs actually ever backed these puts up with cash.

They just never seemed like his style at all for me.

Bulldozer on the other hand may be sweating it out right now.

Any thoughts?

Absolutely, which is why I'm rather tongue-in-cheek.
They were only ever paper trades.

jog on
d998

 

[dbphoenix]

Absolutely, which is why I'm rather tongue-in-cheek.
They were only ever paper trades.

jog on
d998

Make that "message board" paper trades . . .

 

[dc2000]

Lets not kick him in the nuts when he's down

Geeze I can't believe I saying this champagne bubbles clouding my thoughts

 

[ducati998]

Lets not kick him in the nuts when he's down

Geeze I can't believe I saying this champagne bubbles clouding my thoughts

True, true.

Lets just stamp on his hands instead?

jog on
d998

 

[stoic]

Lets not kick him in the nuts when he's down

Totally agree, let's give him the benefit of the doubt.

Oh God, ducati, you're always out for the bit of fun aren't you

 

[Profitaker]

Margin has DOUBLED since yesterday - I bet the Soc is glad it was only ever paper trades.

DOW down 400 points ! Let that be a lesson to the Soc and his followers. Further slide expected tomorrow.