2min chapter

The Macro Trading Floor cover image

Diego Parrilla: China Is Running Out Of Options

The Macro Trading Floor

CHAPTER

Investing in Options

If you were to play this by just buying the delta one, so just buying the forward, which is the spot price at a future date, you could be a relatively safe. But when you buy your option, i i don't use var 95 in this case. Its not value at risk with 95 % confidence. It'sVar 100 with 100 % certainty,. You cannot lose more than your premium. And this is the reason why i might be spending some money. Maybe i could save it. But on the other hand, i know my downside. I like the vall and i like the leverage, and ilike the carry. So i think it's a trade that it's going

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