@nbsharma@jam_croissant My understanding is - long convexity by short on stocks like ARKK holdings hedged by long OTM NDX calls. With vanna on vacation, volatility will lead to big moves on both sides,
@sanntrades In financial world, just investing in equities is “risk on”compared to fixed income assets, which are non risky. For us equity market players investing in equities is risk off, margin trading is “risk on”. 😂
@FlyrUsr@jam_croissant You will probably get that opportunity next week. There needs to be an IV spike for vanna to be really effective. Vol goes up next week, then vanna flows use it to grind higher. Cem, please correct me if I am wrong.
@DomeStrategic@jam_croissant @Swello19 He mentioned 15-17 March couple of days back. +-3 days around opex is when Vanna takes a break, gamma becomes negligible and a bad news can break the market.
@chayan_rathi@Mitesh_Engr Big hedge funds and banks use options as a hedging tool against volatility. They are ready to lose small capital buying options or spreads, which safeguards a big loss against the stock position they have. And they want to buy them when they are cheap- low volatility & vice-versa
@rakeshkhajuria That’s not oil falling below $4, that’s just april future contract. The storage costs for oil which will delivered is far more than oil itself. Real price around $22 which is of may contract.