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The $10 strike TSLA BSM Calls are $2,040 ITM. As a mirror image with equal payout, your "invention" would allow for the $10 strike TSLA "FairPuts" to also be $2,040 ITM. There's one glaring problem: For your $10 strike TSLA "FairPuts" to expire $2,040 ITM (in-the-money) just like the regular...

A much better idea would have been to put a limit/cap on the Calls so their max profit can't exceed the max profit on the Puts. So a $10 TSLA Call could be worth $10 maximum at expiration, just like a $10 TSLA Put could only be worth a maximum of $10 at expiration. If you have defined...

So my Tesla $10 strike regular BSM Puts only have $10 MaxLoss, but your TSLA $10 strike "FairPuts" have unlimited MaxLoss. Like someone could lose a million dollars on a short 1 lot $10 strike "FairPut". The margin requirement difference between the 2 would be astronomical. Conversely, your...

"Long FairPUT: LZ(const): Sx >= K(100.000000;z=0.000000) POZ(var): Sx < K(100.000000;z=0.000000) PZ(var): Sx < K-P(88.076462;z=-0.423216) LZ_MaxLoss=P(11.923538) PZ_MaxProfit=Sup-K-P(ie. unlimited) Credit=-11.923538 Payout=0.000000 Profit=-11.923538(-100.00%) (z=0.743812 zUp=0.743812...

@thecoder Your puts are nothing new. They trade already in crude oil and interest rate options on futures. You're copywriting something that already exists and is used in practice by thousands of traders. What you clearly don't understand is those products are inherently different than stocks...

Hey Einstein, the most any ITM 90 strike "FairPut", "DumbPut", or regular vanilla put (what most of us prefer to trade), could be worth at expiration with spot at 80, is 10.00. At an expiring price of 11.25 you are synthetically valuing worthless OTM 90 calls at 1.25 (put call parity). Your ITM...

Great stuff Matt

Eliminate unwanted delta. Isolate the other 1st and 2nd order greeks to simplify your risk.

Good looking women have it so easy. They have all the power. I keep telling both my kids marry for the money, not for the looks. You'll always be much happier in the end with the money.

You shouldn't be promoting and recommending to unsuspecting traders to use a deeply flawed model that would lose them a lot of money. I'm going to ask Baron to remove you from this forum permanenty. You also need to be careful about uploading incorrect reinterpretations of the BSM on GitHub...

You are by far the biggest retard I've run into on ET...and that's an understatement.

The normaldist put computations only work if stock prices can go negative.

This is your methodology which you stated earlier: "lognormal is used for pricing the options (ie. calculating the premium), and normaldist is used for FairPUT computations. This is the correct method, as I first tried hard with the lognormal but failed b/c as soon as you add risk-free-rate...

Normaldist to price your "Fair Puts" assumes negative stock prices, which is impossible.

Lognormal distribution: The Black-Scholes-Merton model assumes that stock prices follow a lognormal distribution based on the principle that asset prices cannot take a negative value; they are bounded by zero.

Here do some research before you try rewriting options theory: https://www.investopedia.com/articles/investing/102014/lognormal-and-normal-distribution.asp Taken from article: "Normal distribution cannot be used to model stock prices because it has a negative side, and stock prices cannot fall...

Read my lips: You are modeling negative stock prices if you use "normaldist for FairPUT computations." Result: Your "Fair Puts" are going to be grossly overpriced with excessively high deltas.

First of all, your "FairPut" idea already exists. Traders already use the normal price distribution to price options for instruments that have unlimited downside as well as unlimited upside. Crude oil prices and futures spreads can go negative, and interest rate products (Treasuries, Bund,etc)...

"DumbPut" trading at a huge premium over "Fair Put".

IF SLR gets back below $1.00 I'll have to back up the truck and load up on it. They just made a ridiculous amount of money for only being a $2+ Billion company.