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Actually, as a buyer of an option you do not have an obligation to take the shares. You can opt out of auto-exercise; it can be done for a specific option (as long as you inform your broker before the cutoff) or as a default setting for the whole account (that might be possible or impossible for...

Something smells here. Either the leg liquidated was the short one (ok, even that makes little sense since I'd imagine IB has enough sophistication to liquidate a spread as a package) and @Hivey is wrong. Otherwise, it should be up to the option OWNER to opt out from taking shares (you know...

Did you do that over the past 2 days? :)

I am not sure what IB paper execution does, but limit orders are very hard to simulate if you take into account the position in queue for price/time priority order books. If you assume that you are first in the queue, you always gonna make money when showing passive orders. If you assume that...

We are supposed to bow in awe! This said, a small gain is better than a large loss :)

Counter anecdote. I have not eaten meat for 30 years. Over that period I completed a PhD in physics, worked for several top ranked investment banks as an options trader and am working as a portfolio manager for a large hedge fund. At a recent place of work, over 50% of the team were vegetarians...

Wrong. There are active HFT participants in all of the assets classes you've listed.

People have been doing stupid, nasty shit for thousands of years. It does not mean it's the right thing to do. If someone feels compelled to go to a market where an animal is slaughtered in front of them, something is deeply wrong with that human being. Maybe what we are seeing is the...

In real life, all machines doing the actual trading (i.e. connecting to the exchange and submitting the orders) are running Linux. So if he's trying to play in the algo trading space, it's worth learning how to do that. PS. Windows 10 truly suck. I am forced to run Win10 on my PC at work...

I assume you go through this whole thing to provide liquidity and avoid paying bid/ask. Do you think you are actually getting an improvement over simple aggressive execution and/or using exchanges facility to get filled at the settlement price?

Actually, these blowups are more of an agency problem, not a risk management problem. Option sellers in the OPM space blow up because they are extremely leveraged. They are overly leveraged because they are trying to offer to their clients something that should not be offered to them, "smooth...

I don't need a book to know that wealth is accumulated by spending less, making more and investing the difference. Even "live frugally" is not needed in that sentence. However, the guidance you really need as a "mid-grade rich person" is a cornucopia of approaches to the intricate details of...

You think that stuff is relevant in the modern world? I have skimmed through the The Millionaire Next Door and found it to be very dated.

Strong conviction. Does that mean that you're outright short via delta-1? While I am cheering for the market to implode, I'd not short it. It feel like such a widow-maker trade after all these years.

In my experience, actual financial blowups in the institutional finance are driven by risk management specifically. Of course, there are some PMs that has such a strong conviction about a trade that it ends badly. While these ego blowups are well publicized, they are relatively rare and most PMs...

Will come in handy if there is a zombie apocalypse due to corona virus too!

Thanks! I don’t know such a thing exists, gonna use it for weekend indicators.

Where do you see that? PS. Actually, conditional on his nomination, the probability of him becoming a president is roughly the same as before (~60%)

As a side note, the volumes in these contracts are statistically significant. For example, democratic nomination traded 500k on Friday. It’s tempting to get involved somehow. ps. I owe you dinner

Exactly, that’s what is implied in the betting markets. I just looked, he’s now at 38% to win the presidency and his nomination is at 66%. You can do the math yourself to get the updated conditional probability :) https://www.predictit.org/markets/13/Prez-Election