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I am making OTC markets on toilet paper calls as we speak.

LOL. What an awesome blowup story (pretty sure that guys is leveraged too)!

Or the opposite, dampen them, depending on the direction of the dealer positions which are very hard to figure out. My point is that either way, the volumes going through the markets are order of magnitude higher than the sizes of delta rebalancing even if you assume that the outstanding...

Maybe maritime tax jurisdiction should bail them out, in that case?

Why do people come up with “analysis” but never look at the numbers. These moves weren’t options/vol products driven at all - you can simply look at the volumes and compare that to the outstanding gamma.

I honestly hope it’s not gonna be enough and they will all go belly up. The pool could use some chlorine

Was there any specific allocation for cruise companies in there?

There are two primary reasons to look at variance. First is to understand the flows that variance swaps create. Second is to trade related products.

Could you refute my "facts" with any of your own? Thought so :D I assume currently the only people with understanding are the owners of the tinfoil hats?

My opinions are supported by the facts (e.g. that Bridgewater has lost money this year despite "very huge profit" from the options position). But if you don't like facts, that's ok, it's fashionable these days.

"Liquidity, like pornography, is easily recognized but not so easily defined" (c)

Dude, they actually lost money on this move (i.e. they are down ~20% on the year) so the option position did not help them. Those who have money will buy more and way cheaper. Like myself, since I actually made a lot of money on this move (volatility is usually good for me) and am sitting...

Can we please adhere to some basic punctuation and grammar rules? It's very hard to read this, especially for the those of us who are drunk or high. Anyway, back to the question. We don't know what the global economy is going to look like after the pandemic and it's very possible that the US...

Enlighten me.

Doh. You do know how hedging works, right? If you are making money on your hedges, you are taking losses elsewhere in your business. In fact, "Bridgewater Pure Alpha was down 13% this month through Thursday following a drop of 8% in the first two months of the year" as per BBG. Do we? After the...

They were just hedging their long equity positions - it’s a 150 billion dollar fund and paying 1 billion for hedges is totally normal.

Somebody else’s failure, of course. A lot of our perceptions about the path to success are shaped by selection bias. It’s especially true in the modern social media world where failing happens behind closed doors, while victories are widely publicized

The problem is that failing is not free. You buy a lottery ticket enough times and you will go bankrupt. True both in markets (options are expensive) and in life (higher payoff has a lower probability of happening and time is the most expensive asset out there). That’s why, btw, most...

I found a dollar bill on the side walk 3 days ago (in the NYC, would you believe it?). In terms of return on capital, that was the best trade of my life.

Off-the-run bonds are trading at a heavy discount to on-the-run.