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I actually quoted the wrong person, the quote I was referring to was ""Your alleged ITM option position could easily be OTM the next day." I was pointing out the fallacy of that logic. Your explanation definitely makes more sense!

You may not be able to collateralize but this logic isn't really sound. A deep itm option on a stock like IBM is far less likely to lose half its value over time x then an ordinary position in a stock like GPRO, for example.

Not a great way for sure, easier for me than visiting Calle Florida in Buenos Aires though!

It's an oblique way to come to it, you are essentially doing a swap where you bring something into the country that requires "hard" currency to buy and a person in the country pays you their "soft" currency for it. The rate at which they're willing to pay you vs the item's value in hard currency...

No, you're clearly impervious to reason which is why I'd so much like to be the counterparty to your trades. Seriously, if you ever want to do anything OTC I'll be happy to take the other side of your bets. But others do read this who might be open to learning and can take advantage of the...

The concept of risk adjusted return is key. It seems pretty clear you're not familiar with it. I just wish I could figure out a way to be a counterparty to everyone with this attitude!

Except for a couple cases like Argentina and Venezuela with currency controls, why would it be different? For those cases, a site like entrusters.com may provide you a ballpark idea of the street rate.

Again this is oversimplifying because it ignores idiosyncratic risk which often accounts for the majority of volatility on a single highly volatile stock. For example, GPRO is one of the most volatile stocks out there. Its Beta, .6. GPRO can gyrate wildly, but as long as those gyrations don't...

That's kind of a nonsensical statement. Sure, lotto tickets are high risk opportunities available to the middle class. Who asked for high risk opportunities? I don't know about you, but I want alpha, not risk.

Thank you for that insightful post, that really added to the discussion and brought up several great, well supported points. I'm sure you must have accomplished what you set out to accomplish with that post.

I'm guessing that poster didn't really understand the fundamental concept of CAPM based on their quote "The CAPM says there is a risk free rate (rf) to which a risk premium (rm * beta) is added. The total of rf and rm*beta gives the exp. rate of return." I'm not good enough to explain CAPM in a...

Thank you. The key, and I'm really trying to explain here not be a jerk, is that Beta is not a simple measure of volatility. If it was, then you're right, it couldn't be negative. It is really a part of another concept, the Capital Asset Pricing Model (CAPM), and its really best thought of in...

Perhaps you might consider that if the sum of your knowledge about something comes from a wiki, you perhaps ought not argue about it as if you are an expert with individuals who may actually know what they're talking about? I'd recommend Peter Demarzo’s book Corporate Finance which has a good...

Your understanding of Beta should probably come from more than a one paragraph wiki. To simplify, there are two types of movement of a stock, movement because the market as a whole moved or idiosyncratic movement because of something specific to that stock. A stock with a beta of 1 tends to move...

There actually is a law in the US limiting a number of investments to "qualified investors", the definition of which is clearly upper middle class to rich.

I'm fairly certain you're still subject to " A day trade call is generated whenever you place opening trades that exceed your account’s day trade buying power and then close those positions on the same day. You then have five business days to meet a call in an unrestricted account by depositing...

What is the regulation that limits the number of traditional equity options trades you can carry out in a day? The regulations are pretty simple, it sounds like you're really just trying to avoid the PDT restriction, right?

Just out of curiousity what is your socialist country that you're referring to?

OK, so I agree with you. If banks were really wholesale lending money at negative interest. I think that they're not and this just makes for a good story. Ms. Christiansen seems to be an anomaly and they even point out that "Even Ms Christiansen will still pay the bank each month due to the fees...