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    Is iv skew the result of an error in the Black-Scholes model...

    Right today's underpriced vols are tomorrow's over priced.. And vice versa....a guy sells a call and Delta hedges... He breaks even and or makes a small gamma scalp... So he sees his pnl and thinks.. that option was over priced... Meanwhile the buyer of the call watches the underlying drift up...
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    Key Levels for Silver

    What are the longest term options on silver
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    Dumb questions on Eurodollars..

    I've always wondered about currency and interest rates , carry etc... But I think Eurodollars are interesting because you can roll down the curve and make the changing from longer term go shorter term... And you can use stops
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    Dumb questions on Eurodollars..

    cooll.. that is what i was thinking... I sort of suspected years ago otherwise but i was told over and over again no... There are no instruments where you are collecting interest in with a leveraged instriment.. unless you are buying dividend bearing stocks on marginor something like that
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    Is iv skew the result of an error in the Black-Scholes model...

    some people talk about under pricing calls during a bull market.. sure that is the case.. but that is relative to delta.. and not considerate of volatility ... It's path dependent.. a market can go up 200 points over a week or end up unch and have the same realized volatility as volatility is...
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    Dumb questions on Eurodollars..

    There is a convergence representing the movement along the yield curve.. From longer term rates to shorter term rates... This is how one can construct an entire yield curve from Eurodollars.. I really didn't think your "synthetically" getting paid interest through the future.. I thought it was...
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    Is iv skew the result of an error in the Black-Scholes model...

    just keep telling yourself over and over again.. Market forces cause market prices , not models.. models only map the territory.. There is just a generally larger demand for otm put options as a result of most investors being long and purchasing puts for insurance..
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    $60 Trillion of World Debt in One Visualization

    Bad debt is the fed printing money that's burying a premium into the stock market and a leveraged race for return....
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    What does Counterparty Hedging mean?

    You already asked this question
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    Key Levels for Silver

    Well I was looking at slowly entering in leaps... Long dated calls that is on slv.... I can't see this being near finished either... I speculate this is deflation anticipated in front of rising interest rates
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    Is this trading strategy illegal or against some brokers policy?

    In theory if they give him that short of a shoestring they should be on the hook if you ask me
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    Is this trading strategy illegal or against some brokers policy?

    He is talking Bout using a ton of leverage and using the risk controls of hi broker to make bet in both directions
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    Rosebud

    Isn't all using historical prices fitting
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    Rosebud

    So i'm behind the times here OVX stopped trading?
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    $60 Trillion of World Debt in One Visualization

    another one http://www.statista.com/statistics/268177/countries-with-the-highest-public-debt/
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    $60 Trillion of World Debt in One Visualization

    here is the chart. debt to GDP... GDP is a proxy for economy size therefore normalizing .. and making cross country comparison more comparable http://www.zerohedge.com/news/2015-02-23/biggest-problem-facing-world-today-9-countries-have-debt-gdp-over-300
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    Key Levels for Silver

    Obviously silver has similar drivers as gold.. Is it that metals are being driven down based on anticpated deflationary interest rate hikes.. handle123 do you have levels for silver? anyone buying silver yet?
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    Is iv skew the result of an error in the Black-Scholes model...

    Or more importantly a way to calculate relative prices!!!
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    Is iv skew the result of an error in the Black-Scholes model...

    They only have a negative return because of the tendency for the market today grind up for long periods of time... That implies calls being mispriced.... I just don't agree with they way some of you guys are looking at this... You use a model to reverse out implieds from price as has been...
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    Oil stocks

    Geez.. that low!
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