All Questions
Tagged with option-strategies risk-management
6
questions
2
votes
0
answers
118
views
Risk-managing vanilla books (sell-side)
I am interested in learning more about how traders risk-manage books of vanilla options. I presume there should be a fairly standard list of facts. For the moment, the area of interest is FX, as ...
- 747
5
votes
0
answers
288
views
What put options would the Universa Tail Fund have bought?
According to this Bloomberg article, Universa was up 3,600% in March 2020, by hedging with extremely out-of-the-money puts: https://www.bloomberg.com/news/articles/2020-04-08/taleb-advised-universa-...
- 61
3
votes
3
answers
2k
views
Simple strategies for tail risk hedging that retail investors can use
Universa Investments run by Mark Spitznagel popularized the idea of portfolio insurance (also known as tail hedge) protecting the investor against severe market declines (tail risks). By using this ...
- 131
4
votes
1
answer
129
views
How to model/price the risk of Covid-19 and other pandemics
How would you model and price the risk of Covid-19 pandemic? These large cost low probability events with very little history seems to pose a particular challenge when quantitatively modeling and ...
- 6,642
13
votes
1
answer
2k
views
Risk management tools for long term Gamma/Vega sellers subject to margin calls
TL;DR: if you're a retail investor and you systematically sell long-term vertical spreads while staying Delta-neutral, your main risk comes from Vega and the Gamma of opening gaps that can throw you ...
- 2,133
2
votes
1
answer
107
views
What instruments help me receive a premium?
Apart from selling options , what other instruments can I trade(sell) to collect a premium ? The main problem that I face is as follows :
I am buying a Call option which I would like to fund by ...
