Friday, October 17, 2008
Paper Trade - Sell OSX Straddle
The Oil Service index is currently trading 135. I say sell the November 135 straddle - it's "35.50 bid", and maybe lean a little long against it. With 36 days to expiration, a seller will collect almost a buck a day.
I'm not putting this trade on as *selling straddles* is not something I've done since I started a family. Too much margin, too little sleep.
These OSX options are what you'd call "fat". The XAU options are through the roof as well.
Anyone short vega [net seller of options] in these markets must have gotten killed this past month. I wonder how Timberhill, the trading arm of Interactive Brokers, has been doing? I wonder about Susquehanna, who in years past had been an aggressive buyer of options, has fared?
I said to my wife the other day,
"The good thing, the silver lining in these major market meltdowns, is that in all likelihood someone you despise just went bankrupt!"