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except for fixed income.. haha

Holy shieot..

Interesting.. Options can be thought of purely in terms of convexity. Being short/long ... Wiether convexity is cheap or expensive. But how does the mechanics of it work... I've read some of the literature on it. Its just not clicking.. Let me read it again.. And I'll quote what's read and...

so no word on what convexity means?

keeps punching up at 95.50

I hope one of you guys have a decent explanation for what convexity represents...

I play tennis with a guy that traded on the floor of the American Stock exchange in the 80's . He doesn't trade anymore.. That was back when you could just make money putting on box spreads, and conversions and stuff..

I'm not trying to be joe six pack .. ahah but i get your drift.. ..

I think the focusing concern is right on... there is nothing more pronounced in my trading career as losing money trading in products in which i had no deep understanding of.. yet paradoxically, i would not be trading at all if i hadn't bought apple options and lost 5k right off the bat way...

don't pay attention to stocktwits.. think, read, quantify.. I did that when i was first starting out.. its an outlet for advertisers..

i'd like to see how many of the ACD factors you have included.. In the book there is a 30 day look back deal.. and a few other things i want to review.. obviously most variables include the actual hours that dictate the opening range.. but you follow

This to me is one of the key reasons why i am interested in this particular trade... I trade vix options/futures.. and the thought of being long steepeners as a proxy for being long stocks(short volatility) is of interest to me.. The other thing Mav while it is useful i'm sure to learn...

So in your example the scenario of option B the second year or second segment/leg of the loan should be priced as if it was just the difference between the 1st year rate of 2% and the second year rate of 5% .. such that an investor would have no preference over taking a two legged contiguous...

how are bonds a subject outside of Eurodollars?

you always seem to know what the F03* is going on... haha.. I get exactly what your saying.. I read about this in another futures trading book about being able to deliver whatever is the cheapest... Obviously your implying the easiest money is to trade where retailers are heavy

oh i get it.. cash market.. the actual bond market.. meaning going and actually getting the bonds, and selling the futures or something.. i get it.. more to read

so the 1 year rate one year from now.. makes sense.. I'm not sure how that forumla brings you to the future 1 year rate , 1 year from now.. but it seems sensible that you would use the 1 year and 2 year rate to get there..

Good question.. I was asked many times the same thing about options from my friends when i start diving deep into options.. Curiosity i guess.. I know my curiosity teeters on beneficial and detrimental .. i'm interested in futures curves, interest rates, spreading, etc.. Interest Rates sort...

So i found this as the definition of a forward curve.. "Forward rates can be defined as the way the market is feeling about the future movements of interest rates. They do this by extrapolating from the risk-free theoretical spot rate. For example, it is possible to calculate the one-year...

I have no formal education on bonds.. Just from my own research.. I quickly feel a bit of misunderstanding when it comes to this.. So this paper.. "Understanding the Yield Curve" first starts talking about a par yield curve, spot rate curve, and the forward rate curve.. I don't really...