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Sorry, I'm not being condescending at all. You're simply incorrect and I'm trying to be educational and helpful instead of telling you that you're a moron who doesn't know what the fuck he's talking about. If you'd like me to shift to that I certainly could, but I think you're honestly learning...

At the same time though, if it's structured as a "rent to buy" the buyer is exposed to huge counterparty risk on the part of the "seller". If anyone senior to them, including the county in the case of property tax, forecloses on the house they end up with nothing but an unsecured claim even if...

Correction well deserved!;)

Well you're learning, which is good! We all agree that "if they were european style exercise and the market expected the price to come down prior to expiration, then the price of the option may not move much if at all -- and this is the primary issue with VIX options timing." is nonsense. Now...

So just to be clear we're now engaging in a more esoteric discussion, I think we all agree the naive view I was responding to was completely incorrect? I agree that "The determining factor for early exercise of an American option is the value one gets from receiving cash today at time t vs at...

It's a common beginners mistake to think of options the way you are. While it makes intuitive sense at first blush it's actually completely wrong. TLDR the only difference between the price of a european option and an american option involves stocks with dividends where early exercise is...

Just to be clear, SCTY was not in bankruptcy, I think you might be misremembering? Their stock never traded lower than $16/share in it's history. It was trading in the low $20s for the couple months before the merger announcement. If you include the options he lost per the article cited, and the...

The word "cheat" was a bad choice I realize. I meant shade, or edge, or somewhat overweight your market making book in the direction you think the market is going. To "cheat" in a direction is a common nautical term from my previous life (cheat the left side of the channel) and I sometimes slip...

The CEO of SolarCity, Lyndon Rive, was literally Elon Musk's cousin. Although he lost his job with the merger, so didn't really work out that well for him I guess.

It's not the chargers, it's manufacturing the batteries. I think you're right about them being in the stock selling business as was Amazon. Amazon could never have raised the amount they needed in 1999 to become the leading cloud provider if they sold stock in a cloud service. Tesla could never...

I agree (about the likelihood of profitability). But at the risk of bringing up too many analogies, think about a biotech firm that has a promising drug that will be worth billions if/when approved, but it's 5 years away from approval. The firm can still have a high valuation, even though it's...

I would go back to a comment earlier in the thread that @Pekelo made about the cloud and Amazon. If you weren't aware, Amazon developed a huge cloud infrastructure to run the Amazon store you are familiar with. They realized that this infrastructure could be used for more than just them running...

Sure the bank's trader's can cheat a bit in market making. I can tell you that in the case of at least two banks on that list that I have personal knowledge of the bank itself is pretty clear that they discourage that behavior and if a trader gets caught on the wrong side of it they're going to...

Sorry if I was a little harsh. We need more people like you in the world and I'm glad you faith is a positive force in your life and in what you do for others.

How does a tax incentive help a company without profits to tax? And could you name that "bailout", they were a nascent company that hadn't shipped any cars in 2008. I know they did benefit from other companies not meeting fuel efficiency standards and essentially paying them for the fact they...

Amazon...

That's funny because I could have sworn you just wanted to "ask them how come all the unexplained, ancient things that are being discovered all around the word that took technology as great or greater than we have today, to build, are explained in Genesis." and now you're "no theologian" and...

"rig the stock price" is a pretty serious accusation to throw out there on your word alone, did you mean "engage in delta hedging"?

So first of all the Volcker Rule, which I presume is what you were referring to? prohibits banks from taking principle positions to profit on directional trades and it absolutely includes forex. It does not prohibit market making, you are correct on that and I should have included that...

Well you're right about one thing! An arbitrary premium target without regard to the volatility of the underlying doesn't make sense. The options math is definitely a more precise way to demonstrate this, but I'll give you a quick thought experiment. Imagine you were selling an option on Pfizer...