I donated 1/4 of my income to Japan, what have you done?!

[Aeson]

x-post. Replace "sure" with "gambling" .

[KrazyHorse]

1) What I know here is physics. This means that I don't feel my advantage (and yes, in this limited case I think my advantage may well have been over virtually all the money in the market) extends to individual companies
2) The decline in JPY cap markets was broad-based
3) I actually ended up buying jun9 (in the money) calls because I didn't want to buy vol (I figured the vol would drop). I felt better holding something with lower implied vol.
4) I don't know how liquid the 3 month options on individual Japanese names are

[KrazyHorse]

Oh, and 5) I am already subject to a huge number of restrictions. It took overnight to get clearance to trade on this, and I am locked in for 30 days. Individual names means that I might get hit with a blackout on transacting at any point, while indices/ETFs are pretty safe.

[Aeson]

I'm not asking about individual companies. Sorry if I wasn't clear. I mean why an ETF on the index, instead of the index directly. I have some thoughts about why that would be, but haven't looked at any of the options involved (and can't viably do so given my connection).

But 5 is a huge one for what I was asking, wasn't aware of that. Of course you can't buy front month options, or really volatile ones (which directly on the index tends to be) in that environment (locked in for 30 days). Even if you're right, it's just a dice roll if you'll be right when it matters since you won't be able to choose (in a timely fashion) when to lock in profits, roll them over, or bail on a loser.

[Aeson]

And I'll have to remove my "good call" thumbs up until you actually close out your position (or at least can close it out). 30 days locked in on options is scary?

[Aeson]

Not as scary buying as selling (unhedged) of course.

[KrazyHorse]

I'm not asking about individual `companies. Sorry if I wasn't clear. I mean why an ETF on the index, instead of the index directly. I have some thoughts about why that would be, but haven't looked at any of the options involved (and can't viably do so given my connection).]

EWJ options natively trade on US exchanges. I've tried to purchase things on non-US exchanges before and it's very difficult (both because of compliance issues and because I don't know my brokerage page that well)

Even if you're right, it's just a dice roll if you'll be right when it matters since you won't be able to choose (in a timely fashion) when to lock in profits, roll them over, or bail on a loser.

I don't think it's just a dice roll (predicated on a move upward) The premium I paid was ~80-85% intrinsic and only 15-20% time value. My delta is ~0.9 or so and my leverage is 5 or 6 to 1. I plan to hold for a month and probably close out (with 2 months remaining). Ideally the time scale would have been ~2 weeks or so instead (because that's what I think we're looking at for nuke scare to blow over) but because I've got so little theta I'm not paying very much for the last two weeks.

EDIT: had wrong delta

[Aeson]

The dice roll was in regards to front month options (or very volatile options) where you're locked in for 30 days. (I'm not sure on this though. Does that mean you can't hedge some other way, like buying puts or shorting the underlying to lock in profits or cut losses once you get the price movement you are expecting?)

Wasn't specifically in reference to your call.

[KrazyHorse]

No, I cannot hedge my position. In fact, every time I trade I have to assent to a statement saying that I am not engaging in a trade for that reason (to hedge any position entered into in the last 30 days)

[KrazyHorse]

By the way, I can't buy front month contracts because they exercise (usually) less than 30 days from purchase. That is a specific rule...

[Aeson]

I see. Is this a restriction due to your employment?

[KrazyHorse]

Er...yeah. There are a number of other rules as well...

[Aeson]

Seems somewhat draconian as is already.

[Aeson]

At least you'll never have to worry about becoming addicted to day trading.

[Zoetstofzoetje]

rules? who needs those in trading. just find a canadian broker.