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Cute. Maybe someone should write something like "things I have learned after 20 years of trading" :)

Did they eat him at least? Otherwise, it's such a waste!

“basically took advantage of guys who didn’t know any better,” he continued. “I instantly thought of my grandmother, my grandfather. I honestly was thrown when I heard about it.”

While I pretty much despise one of them, in fairness they have most of their personal net worths invested in their respective funds (unlike that dude with a fancy watch).

That. I am a "great fan" of Igor, so this put a smile on my face.

In fairness, I've yet to see a PM contract that paid less than 12% on the systematic side and once you start playing with higher Sharpes you get to pretty high payouts (e.g. Jump pays 35% on matrix). On the discretionary side you do see contracts that go down as low as 8% (also, I've never heard...

Sure, they have some theta and some vega, but in a fixed tick pricing world that realizes very discretely and kinda irrelevant. In the risk manager error thread, I wrote a whole treatise on how selling the wings is about non-spot greeks becoming the primary drivers of your PnL and how scary that is.

With @Martinghoul gone, there is literally nobody to provide expert opinion on the topic.

This was not even a Black Swan event, it was more like a Grey Goose event. What a douche!

You should be aware that picking bottoms gives you smelly fingers.

Because it would take an extreme event for these tails to go up in price and extreme events are rare. Like they never happen, ever. More importantly, it's not his money if they blow up and his money if they don't, so it's the right way risk for him.

No, dude, these things are safe. To quote my first boss, a veritable source of trading wisdom, "selling tails is like sleeping with strangers - easy and very pleasureful but one morning you will regret it"

Thanks! Dude, he was short pure vega convexity and dvega/dspot. These things have no delta, very little premium. It's pure crash risk. And he was short that shit in size!

If you had to give it a statistical significance, what do you think it would be? Considering that the market has gone up on average.

The key difference that shelf life of a quant (or a PM, for that matter), is way, way shorter than the career of an MD. Lifetime earning potential of any dentist is way higher than mine, for example, even though my annual take for some past years would raise some skirts. PS. Plus, a specialist...

Ah, juicy! Do you have a link? It would be really interesting to see what exactly happened!

To have something proper, you need a colocated wife, though.

He thought he had Alpha. Turned out to be just Beta. He was short Gamma. Yet he wore an Omega :D

I know what happened, lol, I saw it. Then I wanted to share with a friend of mine who is an energy PM and it was taken down.

Wouldn't that be night-trading for a US-based trader?