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For the 100th time, they don't make movies about candlesticks for you to jerk to. Almost all movies about Wall Street simply use Wall Street as a backdrop. Because 99% of the public is not interested in dbphoenix and his trend lines.

George Clooney's character is loosely based on James Cramer.

Think of continuous hedging as hedging every second or every single tick. As I said before, commissions and bid/ask spreads aside, both over time will converge to the same expected value.

This one from a socialist angle. Finally! :)

You are right. Down 4%.

Oil opens down 7.5%.

I think the pundits have been discounting China way too much. China has some serious issues going on as has been pointed out effectively by Kyle Bass. He has been spot on. I really think the destruction of this will be more on the commodity side then the equity side but the equity side will...

Mathematically it does not matter. If you let your deltas run assuming the options are priced correctly, the long term expected value of this approach should converge to the alternative which is continuous hedging. The first approach will have a higher variance then the 2nd approach but they...

Yeah I think what a lot of these retail folks are missing though is that scalping in and of itself does not generate the profits. It's only when you scalp after you bought options that are underpriced. If you overpay for the options, no amount of scalping by definition can help you. There...

Well, I guess not. http://www.bloomberg.com/news/articles/2016-01-17/iran-stocks-head-for-highest-since-august-after-sanctions-relief

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2015/08/Goldman%201998.jpg Courtesy of Banjo....

That's a great article Banjo.

No. The purpose of gamma scalping is that you believe the premium you paid for the options in terms of forecasted volatility in less then what you can earn through the realized volatility which manifests itself by the two way action in price. Options are priced in such a way that through...

Those all look like good levels. What I think a lot of people don't understand is that the final phase of these moves come with the highest amount of volatility. Do I think CL can trade to 15 or 20? Sure. It doesn't need to drop every single day. I think the "real" low in terms of say...

No, that is not correct. The cost of storage is economically related to the opportunity cost of transferring the oil through time. This means that one who chooses to buy oil now and store it believes the storage option that they own is priced accordingly to the opportunity in time or they...

Alright. Check this out. The cost of oil at a future date is equal to the cash price I can procure the liquid today plus the total logistic costs to that future date which includes storage, transport, insurance, etc. The curve is indeed pricing $20 oil, in fact, it's pricing about $15 oil...

Sure. Sentiment wise though? Every little breeze seems to be able to push down another domino no matter how slight that breeze is. When sentiment is working against a product, nothing is priced in. Economically speaking....sure. We knew sooner or later it would happen. What was up in...

Houston, we have a problem. Oil is going to get smacked next week. Iran sanctions lifted immediately. Will now add 500k new barrels a day of production immediately and anther 500k barrels a day shortly after.

They are captured in the currency number lines. And they are also captured in the price action leading up to the gaps. Remember, the gaps are a byproduct of what is happening in the market. It's simply a result of what the number lines are giving you. So for example, my number lines are...