Hello friends! Thank you so much for watching! I’ve only recently started on RUclips, and this is one of my first videos. I really hope you’ll find it interesting and somewhat entertaining. Please, please do subscribe to the channel - at this early stage, your support has a HUGE impact, and absolutely every person counts. I am doing this full-time now, and if you want to see how it goes, it would be great to have you on board! As always, feel free to reach out for any feedback, questions and suggestions. You can ping me on Twitter or via email in the channel description. Thank you for your help and support!
Why did you stop making videos? You have immense talent, you have to be persistent to grow on youtube. You have the requisite knowledge, skill & entertainment value to succeed.
Subscribed. You have a talent for explaining what can be confusing concepts. Your video editing skills are pretty dang good too. Thanks for the video!!
Absolutely superb Sergei, one of the very very few people in all my time in markets who has actually managed to make these kind of topics clearer while also making them funny and enjoyable. Big fan of all of your stuff👏
Hey Fabio! It's great to hear from you! :) Thank you so much for watching! Glad you enjoyed it :) Hope everything is going well on your end. All the best!
I will love to see how this trade evolves and what are the factors that make this a "negative gamma" scenario for the dealers, if it happens. Awesome explanation.
Hey Sarthak, thanks for watching! The negative gamma is contributed by the fund's long put option - but that impact is muted for now due to short put and call in the structure. For it to have an effect, we need to get closer to expiry and for spot to move towards the put strikes.
This content is superb. I know the RUclips monetization doesn't pay you nearly what this perspective is worth so thank you so much. Maybe add a Patreon?
love it, most important highlight is "When near expiration, it becomes an accelerator for more volatility". Given mar18 FOMC, this will be interesting to see.
I appreciate the twitter thread it’s excellent. Your content is extremely good you don’t have to be comical to get your point across. The way you write about it should be the same approach in video. If you feel people just don’t want to look at someone’s face straight through I would disagree. Plenty of RUclipsrs don’t have to be someone different and have tons of followers. I think that’s the only thing that was turning me off to the content and since I read twitter post I know it’s good so I held off to the end. Appreciate everything you do just giving some constructive criticism because I feel this channel can rock with a few tweaks.
@@PerfilievFinancialTraining I disagree with George's advice. I am not sure I am in a position to give feedback (My channel is "just" 1.7 subs), but I pursue a similar edutainment concept like you do (top info AND fun). I personally do not like to watch pure talking head videos and only do so if I am purely after the content. However, I consider those videos mostly boring. Maybe you and me are after a new thing or little "edutainment" revolution 😉 It is obviously much more work though than just speak as a talking head, and maybe we are overengineering. Time will tell. I occasionally do receive feedback that the fun elements in my video makes my field (consulting) less intimidating to them, and they enjoy that a McKinsey consultant can be funny, too.
Loved it thanks a lot but i'm going to watch this again and again for delta exposure calculations you did on whiteboard. one question though, forgive my ignorance @ 5: 23 you said as of 31dec Q4 expiry (dec) we would see the following data. My question is, strikes selection of respective calls and puts were based on highest open interest on that day? or is it based on the options moneyness tied with the strategy? how do we know which strikes to look for? also @ 7:23 exposure calculations why 43,000 contracts shouldn't it be total contracts on the each legs of the strategy?
Great content and thanks for sharing! One question, how quick does MM hedge? Do they hedge immediately or wait? As Spy move, Do they adjust the hedge daily or weekly? Thanks!
A simple answer is that - it depends. Usually they hedge at the open and close, but it's possible to adjust hedges intraday too, if the market moves significantly.
Hi Jesse, the trade is a hedge for the fund - the fund doesn't delta-hedge it, but keeps the exposure. The trade is supposed to make money when the market falls. Thank you for watching the video!
Excellent! I think an interesting follow-up would be to examine the relationship of this funds' results to simply buying SPY. My hunch? About half the return and half the volatility, but... -50 basis points a year... Which would beg the question - as an investor, why not just invest half in SPY, half in something safe (cash like), and save that half percent a year? :-)
Since this video was shot 3 weeks ago and the SPX and NDX has fallen Over 3% each, what is the risk of this getting out of hand and cause Bigger issues?
I thought the call selling above was a destabilizing force. If the IV goes up, dealers should sell more ES? If IV goes down, dealers should have to buy more ES? Your videos are great and helpful.
Hey, thank you! These topics are certainly in the pipeline. Likely will post a Twitter thread about Vanna first (~February) with a video to follow. Thank you for watching!
The SPX is in negative gamma territory, but the negative gamma coming from this trade is extremely little right now, since we're still >2 months till expiration and vol picked up as well. Atm, delta changes on this trade due to gamma are almost negligible.
Bull trap at 4800 Bear trap around 4500 Wyckoff. Buying the Dip at 4600 and selling the rip. Shorting the rip and selling then buying the Dip rinse repeat Dump and V shape recovery. Thanks for explaining this. I got spy calls at Fridays LOD. Fake Fear Fake Volatility. EMH? Nahh
Hello friends! Thank you so much for watching! I’ve only recently started on RUclips, and this is one of my first videos. I really hope you’ll find it interesting and somewhat entertaining. Please, please do subscribe to the channel - at this early stage, your support has a HUGE impact, and absolutely every person counts. I am doing this full-time now, and if you want to see how it goes, it would be great to have you on board! As always, feel free to reach out for any feedback, questions and suggestions. You can ping me on Twitter or via email in the channel description. Thank you for your help and support!
Great stuff Sergei, beats the long the twitter threads ;)
Why did you stop making videos? You have immense talent, you have to be persistent to grow on youtube. You have the requisite knowledge, skill & entertainment value to succeed.
Ohhhhh, I've been waiting so long for this notification lol
Hahaha, thank you so much for your support! Appreciate it! :) Yeah, been away from RUclips for a while :)
This channel is a gem! Such quality content! Keep it going, I want more 🚀🚀🤩👍
Subscribed.
You have a talent for explaining what can be confusing concepts. Your video editing skills are pretty dang good too.
Thanks for the video!!
Hey, thank you for your kind words and for subscribing! Really glad you enjoyed the video!
Very good video! Well Edited, well explained, well done! Thank you very much for making this subject a little easier to understand
Can't get more lucid than this. Thanks for sharing the wisdom.
Glad you enjoyed it! Thank you for watching :)
Great 👍🏾 🔥video. Understanding the Greeks is 🔑.
Excellent. So worth the wait! Subscribed and hit the bell!
Thank you for your support and for subscribing! Welcome aboard! Glad you enjoyed the video! :)
Absolutely superb Sergei, one of the very very few people in all my time in markets who has actually managed to make these kind of topics clearer while also making them funny and enjoyable. Big fan of all of your stuff👏
Hey John! Thanks so much for your kind words - I really appreciate it! :) Glad you enjoyed the video!
I'm really enjoying the videos. They are entertaining & educational, explaining the topics very well. Thanks for posting and sharing your knowledge.
Hey Lawrence! Thanks for your kind words and for watching this video! Much appreciated :)
This is way better than the typical fare - please keep going
Very very scarce and interesting content... Liked and suscribed
Thank you for subscribing! Welcome aboard :) Glad you enjoyed the video! :)
Waiting for new videos, subscribed , even what I didn’t understand from finance class ,easily i can understand from here. Thanks.
this channel is sooo valuable and instructive for investors!
Thank you, Chengchen! I really appreciate it :)
Well done Sergei and thanks for clearly explaining the Seagull strategy
Hey Fabio! It's great to hear from you! :) Thank you so much for watching! Glad you enjoyed it :) Hope everything is going well on your end. All the best!
Loved this video and your content
Thank you so much! Really appreciate your support!
So good! Looking forward to the next one again
Thank you for watching!
I will love to see how this trade evolves and what are the factors that make this a "negative gamma" scenario for the dealers, if it happens. Awesome explanation.
Hey Sarthak, thanks for watching! The negative gamma is contributed by the fund's long put option - but that impact is muted for now due to short put and call in the structure. For it to have an effect, we need to get closer to expiry and for spot to move towards the put strikes.
Great video! keep making these!!
Thanks! Will do my best :)
Wow, that was amazing. Thanks for the education! love it.
Thank you, glad you found it useful! Thanks for watching :)
extremely interesting, thanks very much
Thank you! Glad you enjoyed it
Hey! Really enjoy your videos and am hoping you make some more again soon. You definitely have a talent for it!
As always, it was very informative and helpful. Thank you very much!
Hi Arash, thank you for watching! Much appreciated :)
Options are so tricky but fun at the same time. Great vid once again. 🔥💯
Thank you, Javier!
thanks for sharing ❤
This content is superb. I know the RUclips monetization doesn't pay you nearly what this perspective is worth so thank you so much. Maybe add a Patreon?
Hi Dirk! Thank you for your support - hopefully will add a Patreon link sometime this week! Thanks so much for watching! :)
Very funny and detailed explanation of a complicated concept
Thank you for watching, Lou!
Thank you for much for this video. Very informative!
Thank you for watching, Costas!
love it, most important highlight is "When near expiration, it becomes an accelerator for more volatility". Given mar18 FOMC, this will be interesting to see.
Thank you, Harry! Just one thing to note - in addition to being close to expiration, it also needs to be around short strikes too.
another great video, Sergei - thnx!
Thank you!
Very informative, thank you so much for the upload.
Thank you for watching, Sukhmander! Glad you enjoyed it.
Great stuff, as always. Informative and enjoyable.
Thank you, much appreciated :)
Well done brother thank you
Thank you for watching!
wow what agreat video! thank you dso mcuh ! I hope you'd post more please
I appreciate the twitter thread it’s excellent. Your content is extremely good you don’t have to be comical to get your point across. The way you write about it should be the same approach in video. If you feel people just don’t want to look at someone’s face straight through I would disagree. Plenty of RUclipsrs don’t have to be someone different and have tons of followers. I think that’s the only thing that was turning me off to the content and since I read twitter post I know it’s good so I held off to the end. Appreciate everything you do just giving some constructive criticism because I feel this channel can rock with a few tweaks.
Hey George, thanks for the feedback! Will take note.
@@PerfilievFinancialTraining I disagree with George's advice. I am not sure I am in a position to give feedback (My channel is "just" 1.7 subs), but I pursue a similar edutainment concept like you do (top info AND fun). I personally do not like to watch pure talking head videos and only do so if I am purely after the content. However, I consider those videos mostly boring. Maybe you and me are after a new thing or little "edutainment" revolution 😉 It is obviously much more work though than just speak as a talking head, and maybe we are overengineering. Time will tell.
I occasionally do receive feedback that the fun elements in my video makes my field (consulting) less intimidating to them, and they enjoy that a McKinsey consultant can be funny, too.
PS Just figured you worked for JP Morgan before. Just made a Goldman vs McKinsey video... just saying 😂
PS2 Just subbed 🙂
Great video!
Thanks so much Daniel!
really great content!
This was awesome!
Thank you!
Thank you Sergi u are my best sensei
Thanks, Zack! :)
Absolutely awesome thank you
Thanks!
Thank you for watching!
Really nice video
Thank you, Fernando!
Any suggestion on books to read on this ?
Really interesting
Great video!
Thanks
Thank you!
Love it!
Thank you!
very informativ and funny!
Loved it thanks a lot but i'm going to watch this again and again for delta exposure calculations you did on whiteboard. one question though, forgive my ignorance @ 5: 23 you said as of 31dec Q4 expiry (dec) we would see the following data. My question is, strikes selection of respective calls and puts were based on highest open interest on that day? or is it based on the options moneyness tied with the strategy? how do we know which strikes to look for? also @ 7:23 exposure calculations why 43,000 contracts shouldn't it be total contracts on the each legs of the strategy?
SLAP THE LIKE BUTTON!!! NOW!!!
Already did!!! :) But yes! Thanks for reminding everyone of this important message! :)
Great content and thanks for sharing! One question, how quick does MM hedge? Do they hedge immediately or wait? As Spy move, Do they adjust the hedge daily or weekly? Thanks!
A simple answer is that - it depends. Usually they hedge at the open and close, but it's possible to adjust hedges intraday too, if the market moves significantly.
I think a format of double personality will suit you :)
What would you guys do if calls and puts (options trading) were disallowed in the financial system?
Probably macro...
great content
I flipped that 4 month put chart around and It looks amazing ! Sell Mortimer ?
Hahaha, indeed! :D Those drawdowns however.... ouch!
So if everything is hedged and market neutral, what is the point of the trade? How does it make money?
Hi Jesse, the trade is a hedge for the fund - the fund doesn't delta-hedge it, but keeps the exposure. The trade is supposed to make money when the market falls. Thank you for watching the video!
@@PerfilievFinancialTraining ok I see thanks! These videos are great!
Excellent! I think an interesting follow-up would be to examine the relationship of this funds' results to simply buying SPY. My hunch? About half the return and half the volatility, but... -50 basis points a year... Which would beg the question - as an investor, why not just invest half in SPY, half in something safe (cash like), and save that half percent a year? :-)
Since this video was shot 3 weeks ago and the SPX and NDX has fallen Over 3% each, what is the risk of this getting out of hand and cause Bigger issues?
I thought the call selling above was a destabilizing force. If the IV goes up, dealers should sell more ES? If IV goes down, dealers should have to buy more ES? Your videos are great and helpful.
Hi Scott - usually, for IV to go up, the market needs to fall. And if it does, the dealer long call is further OTM and its gamma impact decreases.
Are you still teaching? Do you do classes or individual mentorship?
Next video if you could cover the topic on options VANNA, implied volatility, VANNA rally and DTE
Hey, thank you! These topics are certainly in the pipeline. Likely will post a Twitter thread about Vanna first (~February) with a video to follow. Thank you for watching!
Do you have any thoughts on how this trade will evolve over time , let's say next 3 expirations?
What's it now at 4400s&p ?
The SPX is in negative gamma territory, but the negative gamma coming from this trade is extremely little right now, since we're still >2 months till expiration and vol picked up as well.
Atm, delta changes on this trade due to gamma are almost negligible.
@@PerfilievFinancialTraining but they should have shifted to different strikes right ? Else the written puts might have killed them !
@@KRH Yes, but the dealers are hedging the written puts, so that they don't kill them.
I know you are a busy person but when you come up on information like this Please make a video on it ASAP thank you for educating.
Bull trap at 4800 Bear trap around 4500 Wyckoff. Buying the Dip at 4600 and selling the rip. Shorting the rip and selling then buying the Dip rinse repeat Dump and V shape recovery. Thanks for explaining this. I got spy calls at Fridays LOD. Fake Fear Fake Volatility. EMH? Nahh
Are you sure you're an ex-quant? Coz ur pretty damn good at being a youtuber. funny as $h!t
Hahaha, thank you for your kind words! Really appreciate it :)
first
Hahaha, well done! :D
Great video!
Thanks, Eric!