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Dude...what do you think does the bucket in bucket shop stand for?

I think you confuse bucket shops with exchanges, my friend. At bucketshops you trade against a single counterparty but that's not the case at Binance and FTX. Robinhood is selling flow to internalizers, also not a bucket shop

Exactly right. We're at 7.8b so if you subtract the 1b from first world countries you're looking at about 6.8b population in the 2nd and 3rd world. They're the main real world users. By the way: BTCs market cap is now bigger than the Korean Won...just saying :D

but it serves probably 100x the number of people who live in the UK

Nah...I highly doubt that players like Ren Tech or Citadel are finding alpha in simplicity. But whatever...keep paying their yachts

This topic has been beaten to death. As a matter of fact, mining for the most part need cheap energy to be profitable so most of it is used either from excess electricity that's usually sold at a loss. Look at this...

I would have a look at put IV first to determine if it makes sense to buy these. During moves out of nowhere put IV also spikes so you would lose a lot more from an IV crush that you'd make with delta. Be careful.

Yes, I know they're active in the derivatives space, since they trade via offshore entities. And even that is questionable as it is not only a regulation issue but also a FATCA one. So if the beneficial owner of the offshore entity is an US entity, the offshort derivatives exchange IMHO would be...

US based, so no derivatives then? If you're market neutral, your sharpe is high enough and your returns are not correlated with spot then your best bet would be to setup a small hedgefund. Finding investors for this kind of stuff is actually insanely easy right now IF you setup correctly...

If you suck at chess...don't play chess

that's what I thought :D

I'm sure you have a KISS way to calculate implied correlation

Dude, just because it's over your head doesn't mean everyone should adjust to your level

It depends on what you want to achieve. If you arb skew, then of course you would want to hedge with the option on the other side of spot (you sold a otm call so you want to buy an OTM put) and hedge delta with shares. OTM vs ATM you oviously also want to hedge with options. IV vs. stat vol you...

You don't. But let's say you sold an option with 50% IV which has 0.4 delta and 0.03 gamma and 10 vega. Somehow you need to hedge it with another option to stay neutral. You look at the options chain and see an option that is 40% IV, has 0.1 delta 0.01 gamma and 3 vega. If you buy 3 of it...

I would not trade iron condors at all. I buy cheap options, sell expensive ones and try to be as neutral as possible. In order to do that, you need to know the greeks before you push the button. I would not even know how to assess a potential trade without knowing how an option behaves because...

Complex but a very good read, especially when it comes to synthetics. eBook is pretty cheap, too

https://tardis.dev/

why would you trade when you have no edge? That doesn't make any sense to me? When you're selling premium you're either trading stat vol vs IV or you find your dosh somewhere on the skew or term structure. Just slapping on an option where you KNOW you don't sell IV that's too high or buy it...

That's just not true. If your edge is in the delta, trade d1 products and stay away from options. If you take actual options delta as a measure for probability your edge is actual probability (that YOU have to gauge) vs the probability the option is providing. If that is equal, you have no...