You basically have a start date & an end date of what ever the squared returns are going to be that you are happy with, so you need the futures to be the leading indicator to plot your start & end within a frame.
You can even do a call option on a variant swap which is where I pegged a 3% fall for fmg and it kept going, so for ever 1% it fell further I made 10 times on my money.
So the traders were re hedging the gamma & panicking so you short their shorts to make them sell which increases volatility and your squared return multiplies. I have NO ISSUE SHORTING BANKERS THAT SHORT EQUITIES !!!!!
They freak & try and find you...hahaha...yah for VRML & rolling IP`s.
So you match pricing indicatives of what the SP was to what a SP will be on a square to insure yourself.
Basically you can not lose, if fmg went up, you made money on the rising pricing rate, if it goes down you make money on your insurance of the square.
But you need big swings to make it worth while, thats why volatility is better for a trader, or just trade equities on a sideways market.
Or buy a pricing indicative for DIVS then short the shorts that short a SP on the EX DIV date.
Thats why some stocks fall heavier than others on ex div date.
There are not that many shorting the short traders, they absolutely hate us, they always want to know who shorts their shorts to make them lose on their positions because thats how you Make money on the variance squaring position. By shorting the shorts.
Thats why when you see a share price going down it jumps back up again very quickly only to retrace downwards. They are covering their shorts because somebody is shorting their short & they lose their position.
I despise them, completely, its wealth destruction. So creating complete disruption for short traders that make the everyday retailer lose money which can make you money...sounds fair to me....I lost a lot on Babcock & Brown and heared about these guys who made a lot of money out of
company going broke. Just could not understand how it worked out that way.
After all, a company that goes broke GOES BROKE right *?* Wrong !!!!
Then I learnt.
ITS WAR.
It sounds complicated but its pretty straight forward.
I use QVR pro.
Bike is a CRF300 Rally which looks like pack horse...hahaha.....fully loaded...almost completely indestructible..
Have a good one.
PS: Busted my baby girl hooking into the chocolates with her back before she goes swimming !!!!
(20min delay)