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"

8 Comments
 

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 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).

Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock
 

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Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard. -30 Rock

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