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Maybe in your area. In my neck of the woods, every ho is way more expensive this year!

I was gonna ask the same questions, but now I don’t need to type them :) PS. We should bookmark this thread for posterity

I can reliably say that the few forum members who’ve seen my cars were very impressed! @newwurldmn @poopy @TheBigShort :)

One is a custom exotic, the other one is a trophy truck.

Dude, I bet your car can't beat my car!

I already did and you pointedly ignored me, so I feel like I am wasting precious bytes. But I'll humor you since I am waiting for something to finish calculating. In general, a good model does not need to perfectly reflect reality. Instead, it is a conceptual representation that is based on a...

Do you even understand what a model is and why do we need it? Cause I've heard better arguments from high school students.

Huh, what? BS is a pricing and hedging model. I am not exactly sure what the metric for "winning" would be.

You are misunderstanding indeed. It's not trash, in fact, it's completely genius despite it's limitations. Like the old saying goes, "all models are wrong, but some are useful". If you are trading vanilla European options (e.g. options on S&P 500, arguably the biggest option market by volume and...

Indians, don't forget the Indians :)

Most people I know who switched from academia to finance stayed their entire lives. That includes yours truly too. It's not just the money, the game itself is actually pretty fun. It's a platitude. The number of people working in finance is actually relatively small. For example, the number of...

Yes, in many ways it's just an interpolation tool. Though once you start hedging, you become dependent on the model assumptions and need to tweak them somewhat to reflect the real world. For example, index OMMs would include vol beta into their delta calculation using a simple linear...

It really depends on your definition of "smart". There are more Putnam and IMC winners at Citadel than at any company that is solving real-life problems. For better or for worse, finance attracts a lot of talented people because it pays and usually pays immediately. I love it how you talk with...

And yet every market making firm out there is using BS for pricing and hedging. They must be complete idiots, right?

Oh, you only read the newspaper titles and storefront signs? That explains everything!

Dude, are you that bored? :)

The problem is that you’re generating rebalancing returns from a portfolio, so it’s akin trading a short gamma position. You going to on average make money and generate massive losses on large sequential moves. This said, it’s known in finance as volatility pumping and/or « rebalancing bonus »

Yes, need a futures account. CFTC, pretty sure, with OCC coming up with SPAN arrays etc - just like VIX futures. I am waiting for her to call back about it since I really want to be involved there. oh, and 1k multiplier is gonna be awesome, right?

Well, I just called someone I know at CBOE and she said it’s gonna be midcurve futures options, settling into monthlys. Fully covered by SPAN magin. For once, their actions actually make sense lol.

Reading comprehension is not your strong suit, is it? The snippet from the article that @ajacobson posted says explicitly “Plans to allow traders to receive volatility index (VIX) futures to settle options at Cboe Global Markets”. This approach is not any different than physically settled...