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http://www.wilmott.com/messageview.cfm?catid=38&threadid=63704

Hi Dmo, Thanks for the "honest effort to understand THE point (it's not mine, forgot the copyrights lol). I don't want to be misunderstood. It's not an arbitrage opportunity that you may find right now. Keep in mind, it's a possibility, in a certain context. I don't want to join the point...

Hi dmo, Course I got the book and the cd. The point is the understanding of the non arbitrage argument. As you tell me you got the book, I will keep it as to support the way I want you to understand this trick. Turn the first pages of the book and it will show the example with...

Hi Crgarcia, Just want to share the way I see the problem. First, stop to think about time decay as you talk about selling options. Time decay is a result of interest rate and potential gamma increase. You received time decay only because gamma risk increase. There is no free lunch over...

Thanks Xflat, Pictures are beautiful, and I understand that you reached your goal by hiring your wife. Bravo. That's the way. That's real options trading lol. Maw

I agree and that 's why he early stopped. But the guy is one with peter Carr (call-put supersymetry) that hit my mind. Very usefull way to think about options. Among options modele you can find how people think in terms of probability and volatility. And we quite know almost nothing about...

You don't know that. I mean you can't know that. Negative interest rates make no sens in the real world but use to be. In fact zero interest rate do neither but... The only way to get through is to keep in mind no arbitrage argument. I said argument not that arbitrage don't exist. That the...

Thanks Atticus, To keep being honest, as I said before, this is not a discovery I've made myself. In fact the book that is the bible for option trader in wall street was written by the Collector of option models, I named Espen Haug. First time I saw that (early 2000's) I was overhelmed...

I was kidding DMO. Please read what I wrote to Xflat, you will see I have a lot of humour. So I will tell you but first keep on mind that you can loose money on risk free interest rate. Take price at 90, strike price at 40 risk free rate is 3% cost of carry is 9% and volatility is 20%...

I'm so Ok with you, I love maths but these are just tools. The point is without maths would you tell me, and teach me, how to comput a delta, a gamma,....It's really things I want to know because my life will be so easier...I'm kidding... The fact is we are not quite able to do with negatives...

Hi Dmo It is not about probabilities distributions, it about no arbitrage element. In fact on the option you will make more money than if you were long the underlying, but it occurs when cost of carry are larger than interest rates or interest rates are negatives (Time to maturity is large...

Please, feel free to check it out...And then come back to me. It is not something i discovered...Please Atticus google it. But if you work with MM, ask them. Course I will give you answers and where you will find it on papers (I swear). But first what about maths...Please tell me I'm wrong...

Hi X, I'm happy to see that we share some passions about options and Porsches (so your real name is not Xflat but flat 6). So feel free to talk about it for hours. I'm not quite good on hockey and vintage racing, but we can talk about Jazz, maths and vintage guitars. I liked the way you...

Well, ...I hope so... It's not a competition, but my point is just that what is obvious for some people is not for everyone, and what everyone think is obvious might be not. I'm really happy the way people keep cool as someone is wrong, and the way for example Coach try to explain (even if...

Hi guys, I'm kidding....not sure. The point is that almost everyone think that delta maxes at 1.00, but, it depends on the type of the option you talk about. Without talking about barrier options with spot that comes near the barrier, a simple european plain vanilla call could exhibit a...

Hi everyone, Hi Coach Just want to say how I m sure you know options Coach and I really like the way you theach, but...are you quite sure that delta maxes at 1.00 ?