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that's correct. there was a good article in september issue of "Foreign Affairs" with all the problems and advantages connected. e.g.: * local impact / local solutions * possibly cheaper to fix * much faster impact if soot emissions reduced (months as opposed to years for CO2) etc.

exactly - a delta trade. another possible course of action is to follow pension_admin advice.

but you CAN'T unwind this trade AH! on the rest; are you sane? what is complicated on trading the underlying when you trade options? do you trade for living of for institution? anybody trading for living would take some money off the table righ away. let's say RIMM trades at 71 AH...

hedge something right now by shorting the stock! no brainer.

so much for the 1.46 puts over christmas...:D :cool:

i am interested in the article - if you can send it to me that would be great. LEH reason is interesting but somehow i am hard to press to believe it. 1. why would LEH had the unbalanced book in the first place?, i.e. why after LEH default everybody needs to receive? remember all OTC...

the above does not explain why 30y is a big negative while 10y is positive... imo PRDC rehedging is tiny to explain the big negative spread. the impact of strong yen is felt more in the vol space. maybe 30y negative has more to do with Fed mortgage buying programs...?

i put C. more or less for fun. but both A. and B. were meant seriously. i also expected that somebody would add D., E. etc... I was thinking about it a bit more and see that A. is really unlikely. in fact too much cash in the system actually widens swap spreads by pressuring treasury...

i am puzzled by one thing. maybe some guys here can help me out. swap spreads on 30 years are negative - what does it mean? A. too much cash in the system + too much credit risk in the system which does not allow to arb this away (ctpy risk on the swap)? B. treasury credit/default risk...

do you speak english?

the year end is here. today was the first day with crazy action especially in some lower cap stocks. use it to your advantage...

just imagine that greece goes BK over the weekend, germany says they do not help them and EUR collapses to parity in a single day...i.e. another ~5000 points or $62.5k per contract... not saying this will/could happen - just trying to demonstarte PAPAs point...

well i do not think that's the way it is supposed to work but it does not matter - the point is there. even marx was extreme right compare to this confiscation. if you get say gbp100k bonus then bank pays additional gbp50k to exchequer and you pay him about gbp40k tax (this year's marginal...

absolutely amazing - marx has not dreamt about things like that even in his wildest dreams.

def is right that on US stocks/futures IB is hardly beatable. but there are many other areas where it pays off to have a different broker. for instance canadian stock are one of the most expensive to trade in the industry when you use IB - and you get the same execution. i used to trade...

with ben behind the wheel? i consider this improbable. more likely gold at 2000 and long rates much higher. ben is completely incompetent when it comes to any other time than brink of a total meltdown - then his money showers become reasonable of course.

well it is more hawkish than usual. anybody saying that this is a normal speech from fed had their heads in the sand for the past 2 years. expectations are more emphasized and that combined with the commodity rally, dollar selloff and the curve steepening is not painting a dovish picture...

wow from me. amazing that the market does not care and the tsy curve actually steepens!!! as really the opposite should happen. this tell you something about the fed credibility under heliben - nobody believes them anything - everybody thinks they will never hike anyway so people buy...

amen. that said, it is getting a touch better recently :cool:

i am sure of one thing - at the moment anybody having 1USD in T-bills is an idiot.