You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more
2. σ^2 = F’ - 2F, this is more interesting since both F and F’ are observable and you can use them to derive an at-the-money implied vol for the underlying. Could use this in a yield strategy (sell power perps and hedge) or to do vol arb of power perps vs options.
I think you could go further — the higher order power perps depend on R^3, R^4 etc and I haven’t bothered to do the math but I’m pretty sure you could get an implied skewness/kurtosis from their traded prices which gives you most of a vol surface.
It’s be cool if an exchange listed these and they became popular, it seems like a much more straightforward way to get leverage and volatility exposure than options.
Someone should definitely list these because I can almost guarantee they will trade at negative implied vols in a big selloff and it will be really fun to come in and scoop them up cheap vs a 2x short in perpetuals.
I basically agree with this but I think there would be a strike dimension but no time dimension? Which I guess is the benefit of perps as well as the cost, that you kill the term structure so decrease the number of products
I agree with you, perhaps in different words, that the trick here is that you can think of power perps as a moment representation of a vol surface, which seems more concise than the standard "vol at each strike" representation
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
