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Gaus, I'm the king of stupid questions, so here goes. 1- Why do you say non-standard expiration? Is this OTC? 2- Options on futures always settle a few days prior to the Futures contract to allow people to get their positions flattened and clean up errors, otherwise all hell would break loose...

"Dividends are zero sum over an ex-date." That was the only part of your response that was relevant. 99%+ believe they come with 0 consequence. "But there is ample evidence that show that dividend paying stock perform well over time. The dividend discount model would have every company’s stock...

Good lord, 99% of quants couldn't trade their way out of a paper bag. Most would shit their pants trading, and the ones that wouldn't are the ones you really need to be horrified of. The model doesn't make you money, it's a tool, and with options the best you get is Black+Decker. I used to joke...

Yeah, but even if we jump to M3 (which should pretty much include everything) that's 15 trillion. I never quite understood the cash on sidelines argument anyway. If someone uses it to buy a share, then the seller now has cash, so isn't that a net neutral cash transaction? I'm going to go find...

I don't understand. There is less than 2 trillion in cash in circulation, and the U.S. is about 20-25% of the global economy. How is he arriving at $73 Trillion in idle cash???

Yes, such a powerful tool that the inflection points of the UK economy matches, within reason, the inflection points dozens of other countries, including the U.S., That is one extraordinarily powerful tool! You must write an editorial informing the good people of the Kingdom that there is no...

Every time I see a single variable linear determination drawn in an extremely complex multivariable environment, a small piece of whatever little respect I have left for humanity dissipates into the black void of nothingness.

"options are riskier than stocks" - Too vague. Which ones? How many? Under what scenario? The biggest losses I have seen involved linear products. (Surprisingly on spreads) The biggest "WTF just happened" losses - options.

"Feel free to check it out yourself if it's of interest. https://futures.io/traders-hideout/...ality-trading-profitability-2.html#post719630" Thanks for the link. Reading the unabridged version of the story, it sounds legit. The first month of my career was the worst month of my life. I went...

I get it, wheezooo is what I called DdelV thirty years ago. Good lord that sounds terrible to say. 30 - ouch!

I believe it was volskewtrader that said it, people need to be careful comparing strike to strike when they should be thinking more delta to delta, otherwise you start comparing apples to breadfruit. When something gets so far out of the money, or deep-in, it is no longer an option in anything...

Cool, thanks for the image. Confirms what I said. The extreme wings exhibit no optionality - no extrinsic. Greeks are all move towards zero with the exception of delta which is 100 or 0.

Don't need to look. My bet is that the low vol OTM options no longer have optionality(premium) in them. Vol 0, gamma 0, theta 0. Anything else would make no sense. 2 - Gamma increases as vol goes lower. This is not debatable.

"A guy on futures.io recounted how, on his first day on the phone as the only trader for his firm (the one experienced guy they had took off on vacation - 'cause nobody could tell him "no" - and gave him minimal to no training), the other traders smelled blood in the water and were yelling...

The term structure doesn't shift (1 for 1), it twists (1,.80,.65,.52....etc) between backwardation, flat, and contango. So you can be -1000 vega mo 2 and long 1550 vega mo 4 = net long 550 vol) but if vol moves, your p+l will probably be close to flat. Now it can shift at times, but never on a...

I giggle every time I see someone ask a trader a question and expects a nice answer. I still have nightmares about the hazing I was put through. I learned to shut my mouth and duck when shit came flying at my head... "Thank you sir, may I please have another." And calendar spreads are not...

I'd add the word 'previous' between 'the' and 'relationship.'

Correlation is a dirty word.

"...he stops trading and do [sic] something else." I chose 18 year old girls and video games... :fistbump::rolleyes:

I've received higher than 1.8% compounded daily growth on my Venezuelan Peso account. :rolleyes: