Insights
Daily market commentary from Imran Lakha. Skew, vol surfaces, hedging, and what's actually moving the tape.
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Why I still pick VIX over SPX puts here
Someone asked me this week whether they should hedge a long-only book with SPX put flies or with VIX.
The usual way you lose in long vol
In long volatility, the usual way you lose is by being early.
Four things I need to see before buying a correction
There are four things I want to see before I'll put money to work into a correction.
The one option flow I would actually pay attention to
Yesterday I sent the Jason Ruschel interview. This is a specific piece of it worth pulling out on its own.
The trader who learned VIX from GFC floor blogs
Sat down this week with Jason Ruschel from Three Peaks Trading.
Before I add to a trade, I put a number on the worst case
Before I add to a trade, I work out how much room the thing has left to fall.
Protective puts are expensive optionality
Protective puts are the most expensive way to hedge a portfolio. That cost is often paid for nothing.
Long VIX as a permanent book with two engines
Long VIX works better as a permanent book with two engines running at once
Why single-stock names dump even on a beat
A lot of options traders learn how dealer positioning works on the index and carry the same logic into single stocks.
Single stock upside is priced too cheaply this season
Single stock upside is being priced too cheaply into these prints.
What options data can and can't tell you
People expect too much from options data in the wrong moments.
The current calm is a positioning artefact
The calm we've had for the last few weeks is a positioning artefact.
The short call roll is a Greek swap
Someone asked me this week whether they should roll a short call that had gone against them on a rally
Inside the head of one of the biggest 0DTE traders I know
Mark Anderson trades one of the largest 0DTE books I know of
The VIX contract that misses your event
Here's a technical point on VIX futures that costs people money every election cycle. It's completely non-intuitive.
Match the expiry to your thesis
The most expensive mistake I see people make on options is picking the wrong expiry.
Before you buy the call, look at the term structure
Before you buy that call, spend thirty seconds on the term structure
Every market maker's recurring fear
Every market maker I know has the same recurring fear
The S&P dealer position has flipped into OPEX
The S&P dealer position has inverted, and that changes what the drift into OPEX usually looks like.
The 30-second symmetry check
Here's a check I run on any structure someone shows me. It takes about thirty seconds.