Search results

If I offended Suiya or JGills with my incorrect usage of the term offset, then I apologize to you.

The fear and nastiness in your posts is palpable so I do believe you hear voices in your head. So precisely what is your fear - that SLE or others are unable to answer or that you are God and will answer for everyone on this board or something else again? I have made a promise to SLE that I will...

Since there is so much confusion around the term offset, I took Suiya's sound advice and researched the term a bit. It's my mistake.The confusion comes because I thought I was using a the futures term and option people also use the offset for a position to hedge as well. I meant for the MM to...

I didn't intend it as sarcasm. I am not really interested in fighting with you or anyone.

Interesting post so be as long as you like. Please post more and question me all you like. LOL - If I am wrong then tell me so I can learn and if I am right then tell me so someone else can learn. There are not too many tools on this board but I have often wondered if people are such good...

I agree with your comment on the seller. He likely took a bet (LOL unless he worked for Gentle Ben or Janet) . MMs don't bet like the seller, which is what you impled in your example. There we agree. So our differences come from a couple of things. You describe one particular hedge trade...

This sounds like something Atticus would write. Is that you? You seem to miss what I say entirely. I am not talking about risk for a single position, nor Open interest, nor convexity. I never talked about risk of the position at all but that options buy and sell risk - an entirely different...

Excellent answer. IMO what takes most people out of the trading game is not their knowledge but they don't realize the full true risk of what they are doing and deplete their capital (dollars and emotional). PS: the quickest way to lose a GF is to trade their account IMO.

This is fact if the market is random series (probably not if it is chaotic), but equates to my disputed past comment that every trader will lose in the very very long run, since the future is unknowable and we trade in the past based on our knowledge of the past. (Although, one respected ET...

I like this comment very much. One of the reasons that fundamentals and technicals fail in the long run is because there is no way to know the absolute truth (vs perception or relative truth) of the data being priced into the market (for example Citigroup in 2007 or Enron or TRE on the tsx)...

I agree with your comment and disagree with the "it is not a practical concern". I think it can become one. Understanding in most thing in life IMO is about exceptions and exceptions to the exceptions and .....

I was not sure of the word Delta Hedging vs Offset. They are different concepts. Strictly speaking both comments were correct, just that I was describing something else. No slight was meant to the comments, just clarification of terms that I thought I might understand ( but maybe I don't). To...

Crayon. Never be afraid to ask questions (even if people laugh at your questions), since we all learn by asking questions and we were all once (upon a time) beginners. In fact, one of the ways to be an expert is to refine one's questions until one discovers the best questions to ask and answer...

With due respect to Jgills, his answer seems to indicate a lack of understanding of the options game that is very common on this particular board. He used a portfolio term for market making. I stand by my comment above. But why quibble, some of these guys send me money from time to time. If...

As a general rule, there are no guarantees in trading. So if you have found the holy grail, you should look for the problem areas. One thought for you is, what happens with your strategy if earnings are announced and there is a "gap" before your options market opens. Could you hedge the...

Market makers don't take huge directional bets (1987 was such a downer for them) so IMO, it is mostly likely that this trade was offset (in 100s of ways) relatively quickly. If one trader sells an option to a second trader and both hold until expiration how can they both make money? If you...

My best guess is industry layoffs for cost efficiencies. They seem to be older for the most part and the new year brings new quarter earnings to meet for each company. It is a danger time for layoffs. In JPMs case, they have a few payouts to make due to legal "issues" and need to raise cash...

Einstein didn't believe in entanglement - spooky action at a distance! Time travel is possible one direction but not the other according to my understanding of relativity. Are you aware of any articles describing travel to the past? If not, how could they already be using that? Just saying!

My thought also. The article is communication without wires using wires - HUH? One key use will IMO ultimately be disallowed by the NSA. Sending secure information can determine if it has been tampered with or not on route.

Doubtless several traders have learned that many of the problems experienced while trading are due to internal mind "noise". Our minds are limited far more that we think (pun intended) and it is hard for most to do multiple tasks simultaneously. Several years ago I learned that playing any...