Posted by DigiNomad on 14th of Aug 2024 at 03:03 pm
Massive orders to neutralize their positions and just collect
the fees, for the most part (winning on the actual trade is just
gravy). When you have "portfolio margin" you can get
absolutely NUTZ exposure and long as it's neutral exposure.
They use algos to measure your risk which sets your margin
instead of hard and fast rules used for standard margin accounts.
Even the market makers follow the same margin rules (they're
supposed to) but imagine if your game is getting paid to make the
market so a broker can collect commissions without risk....how
large you can get with say a 1 billion dollar account that you are
constantly maintaining at delta neutral without hitting your margin
limit? Incredibly large.
Posted by DigiNomad on 14th of Aug 2024 at 02:05 pm
Killing premium but also killing all traders that thought they
were brilliant looking at a chart and selling 5450 calls to give it
a little buffer above the "obvious" short at 5400. They need
to hold it here for a couple of days to cash in on the squeeze past
"obvious" levels. If they let it drop below 5400, all those traders
win.
I'm very familiar because I'm in the trade. The
difference is that I'm not feeling any pain overall because I've
stuck to my guns and stayed delta positive even when a pullback
seemed imminent.
Posted by DigiNomad on 14th of Aug 2024 at 02:14 pm
If we were to drop 50 points it would go from being a decent
week to a homerun. My experience is they aren't going to let that
happen.....too many people in the exact same trade as I am. If they
do drop it, the play for them would be to drop it hard and fast.
Wipe out all the people selling puts that don't know how to
neutralize their deltas each day.
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Markets basically flat and lower
Posted by steve on 14th of Aug 2024 at 02:02 pm
Markets basically flat and lower VIX - Market makers killing premium
How do they do that?
Posted by srusso1 on 14th of Aug 2024 at 02:41 pm
How do they do that?
Massive orders to neutralize their
Posted by DigiNomad on 14th of Aug 2024 at 03:03 pm
Massive orders to neutralize their positions and just collect the fees, for the most part (winning on the actual trade is just gravy). When you have "portfolio margin" you can get absolutely NUTZ exposure and long as it's neutral exposure. They use algos to measure your risk which sets your margin instead of hard and fast rules used for standard margin accounts. Even the market makers follow the same margin rules (they're supposed to) but imagine if your game is getting paid to make the market so a broker can collect commissions without risk....how large you can get with say a 1 billion dollar account that you are constantly maintaining at delta neutral without hitting your margin limit? Incredibly large.
I was about to ask
Posted by isplat on 14th of Aug 2024 at 03:01 pm
I was about to ask the same question, srusso1
That’s what they do…
Posted by shellson2 on 14th of Aug 2024 at 02:16 pm
That’s what they do…
Killing premium but also killing
Posted by DigiNomad on 14th of Aug 2024 at 02:05 pm
Killing premium but also killing all traders that thought they were brilliant looking at a chart and selling 5450 calls to give it a little buffer above the "obvious" short at 5400. They need to hold it here for a couple of days to cash in on the squeeze past "obvious" levels. If they let it drop below 5400, all those traders win.
I'm very familiar because I'm in the trade. The difference is that I'm not feeling any pain overall because I've stuck to my guns and stayed delta positive even when a pullback seemed imminent.
If we were to drop
Posted by DigiNomad on 14th of Aug 2024 at 02:14 pm
If we were to drop 50 points it would go from being a decent week to a homerun. My experience is they aren't going to let that happen.....too many people in the exact same trade as I am. If they do drop it, the play for them would be to drop it hard and fast. Wipe out all the people selling puts that don't know how to neutralize their deltas each day.