Thanks, I did know that synthethiclly they are the same. But from what I understand you would want to look at credit spreads in a high vol environment, and debit spreads in a low vol environment. I'd rather be long vega, than short vega with what we have going on in the world at this point. At least that's what I gather from doing reading today…
Phil had another interesting take that I will have to sit down and walk through. I don't have TOS anymore, and IB doesn't have as clean of a PnL/Risk graph as IB does.
January 16th, 2012 at 3:58 pm
@craigzooka
Thanks, I did know that synthethiclly they are the same. But from what I understand you would want to look at credit spreads in a high vol environment, and debit spreads in a low vol environment. I'd rather be long vega, than short vega with what we have going on in the world at this point. At least that's what I gather from doing reading today…
Phil had another interesting take that I will have to sit down and walk through. I don't have TOS anymore, and IB doesn't have as clean of a PnL/Risk graph as IB does.