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Noobs don’t spout nonsense and then dogmatically claim it’s true. You aren’t a noob. Right? How many times did you call me “shit?” still waiting on those academic papers with the proof of your claims.

Temporal is a big word. I think you added it as a filler. A zero sum game is always zero sum. So you can’t always lose being long an option (because of theta) and being short an option (because of gamma). And we know no one gives a fuck about delta so we’ll ignore that.

less than a Russian conscript in Ukraine?

When I made markets on the ISE, qqq options were 100k up 5 cents wide. That’s 10mm shares.

You got a well written response because you asked a well written question. :)

Everyone is nice to noobs. But The Dawn isn't a noob. He understands the options markets completely. He said so.

we all read it. A zero sum game is a zero sum game. Can you construct a zero sum game that's not zero sum?

Arbitraging dispersion and learning max(S-K,0)! only on elitetrader.

That won’t happen in the vix or other macro products. It can happen in single stocks. vol is supposed to be more predictable than stocks. That’s why they called it volatility arbitrage because it was easy to make money (if you had the computing power and the market access). It’s harder now...

that’s the page where they talk about a call being “the right but not the obligation” to buy stock.

I mean that vol can easily spike 20-30 vols in a few minutes. It can easily deflate 15-25 vols in a few minutes now as well. This wasn’t the case 15 years ago. You used to be able to capture 10 of those vols over months.

bias? Still waiting on those (unbiased) academic papers.

1. contraction 2. Expansion 3. Expansion, though now contractions can be very violent. 4. Yes. It has to be. Otherwise vol will go to infinity or zero. In reality it mimics fear/greed cycles of human emotions.

21 posts and still not one insightful thing to say about options.

a billion! No! A trillion! No! Pi?

A decade as a market maker. 1. Market makers don’t receive commissions - often they pay them to the exchanges. 2. Market makers generally try to get risk flat. Read an options book and you will understand how they do this. They aren’t in the business of taking huge positional risk but rather...

i don’t know much about the company but my guess is that it’s a one drug wonder and that drug failed. You will be waiting years until they find another drug or are able to revamp this one. Do some research before you decide to hold this stock. It’s likely dead money for a long time as it burns...

I look forward to reading a list where you are considered a valuable poster on this site.

11 posts and not one providing any useful information. Great job.

Yeah. You ineloquently said options have a skewed payoff. That's not insightful. Options are zero sum, but the longs lose and the shorts lose. Somehow the market makers (who make only a few cents per contract) are the only ones who earn. I'm sill waiting for that academic research you alluded to.