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you are the kind of guy who goes to dinner out with his friends orders the most expensive dish on the menu and then leaves just before the check comes out and doesn’t offer to pay anything.

the strategy is what signal you use to chose your delta, theta, Vega position.

to be clearer a strategy is: selling vol in a stock where skew has steepend and the stock has not moved. Why? Because in those instances vol is overpriced. or buying long term vol against short term vol in situations where the term structure is inverted and earning are after the first maturity...

So you would work equally hard to earn 5k and pay no taxes than to earn 10k and pay 50% taxes?

odometer isn't a strategy for going fast. A strategy for going fast is to use slick tires and balance the weight of the car to maximize traction and to improve the air filters to get more air into the engine cylanders.

You are saying that if tax rates were zero, you wouldn't work hard for an extra 5k. That's the attitude that prevents people from being a millionaire in the first place.

those aren’t strategies. I personally think odometers are the best cars.

I think vix at 16 is a gift. Way too much risk out there. I’be been closing most of my short risk premium positions.

how so?

I never read the Predator's Ball. It was on the reading list during my analyst program. What a crazy time that was! My old boss was a bond trader at Salomon in the mid 80s- late 80s. He had some fun stories to tell.

buy and sell.

I agree with your frustration on the hypocrisy. I think banks have proven again and again that there is not enough regulation for that industry. I also agree that the only large businesses that can go bankrupt overnight seem to be hedgefunds and banks.

banning short selling works for companies like banks because bear raids are enough to take them out. The problem banks will fail anyway But they won’t take out solvent banks with them. The banking crisis is tricky. The fed need only backstop deposits to protect the economy. They can screw over...

I don’t understand how someone so arrogant and apparently such a market guru thinks in such small dollar figures. if you are trading for 100k annual pnl, that’s less than useless.

Des is the best delta trader I have ever met. I think he’s only had one bad delta call in the last three years. (Of the calls he’s shared with me.)

I appreciate those kind words. I love talking about this stuff.

I heard that Milken negotiated a payout similar to the equities guys. He made so much money that in 1 particular year his personal compensation was greater than the sum of all his competitors net incomes.

It’s relevant because of their pinstripes :).

no one uses last trade for the options. In liquid names we will use last trade for the underlying because of ease. In illiquid names you will use current mid.

This isn’t true. Last trade price can be a long time ago at a very different spot reference. Standard practice is to use current mid with current mid spot ref.