Help on Derivatives Desk Lingo
What does all this mean? Any help / direction would be greatly appreciated. Thanks!
"Vols" were "offered" and then "bid as we reset higher."
"Gamma" was "predictably supported."
"Skew" was/ was not "offered"
"Flattening of the term structure"
"Sellers of variance"
there were more sellers than buyers of longer dated options. then the buyers appear. "reset higher" can mean a lot of things but i'm assuming some index changed
Short term options had natural buying interest
There weren't seller of non-at the money options
The implied volatility for different times to maturity moved more in line.
as for variance, i assume this hasa specific meaning in equity land that i am not aware of. but probably ppl selling a range.
I would also like to know what was meant by the last comment. The rest is pretty standard options vernacular.
Maybe they were talking about vol of vol?
is there a rather good website that lays out the terms involved in derivatives trading? and i'm not talking about investopedia.com or something like that.
i guess sellers of variance may refer to volatility trading( selling based on volatility), just my 2 cents
I think "sellers of variance" might refer to variance swaps, which would be a pure play on selling volatility (as opposed to options which need to be constantly hedged).
sounds like an eqd index desk
Revsly had it right, its referring to variance swaps, which is not just a play on vol but also on vol of vol due to the convexity nature of it, as in you can trade var swaps vs vol swaps.
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