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Fundamental Analysis as a Trading Strategy: “Fundamental analysis is usually the purview of large informed capital interests, which have the means and commercial contacts to analyze fundamental data more accurately than anyone else. The large amount of capital...

I agree, and another thing. Not only does it take literally years to fully comprehend trading but the learning never stops. I’m constantly studying while simultaneously trading. I study my trades and I also study other topics on the side to better my overall knowledge that can help me become a...

that’s the problem, pricing models don’t use power laws, or I’m not aware of any at least. plus what are you trying to accomplish by programming power law option models in excel?

Think about this... When it comes to a traders P/L curve, she is either at the HWM (high water mark/all time high) or in a drawdown. Thus, if you aren’t making new heights via profits you are in a drawdown. Traders (whether aware of this or not) are usually in a drawdown period most of the...

You can’t replace it. BSM ASSUMES GAUSSIAN. If you want a different distribution you use a different pricing model

Of course the "main" source of income is quoting the spread, that's their job. To provide immediacy, to provide stable liquidity. So be default this will be their main income. The problem is this isn't 1977 with open outcrys. 1997 the tightest spread was 12.5 cents, and as the tech boom and...

I think this paper is going to be a foundation, a blueprint for further analysis. As the option markets grow in tandem with all financial markets we will see so many new unique features on how to analyze data. We all know quantitative analysis is the way to properly assess option contracts...

I think your thread title and post contradict each other. “Why would anyone pay .20 more for the same strike with a SHORTER expiry” but the thread title “the DECEMBER calls are .20 cheaper than the November” not sure what you’re trying to ask.but honestly man $VIX optionality is another...

Don’t be stingy! And please, do not recommend Natenburg and McMillan smfh lol

lmao that’s Some legendary AUSTRIAN economics dude not At

Amazing thread

read up how market makers make a profit. There’s more ways MM’s make money than the spread.

it’s time to take a break, .sigma

i thought you’d like it. It covers so many things and all across the book there’s little tidbits and stories. Very interesting stuff.

a quick glance of this book I notice it’s really a history lesson. Many chapters go back to the 1700s era even and explain the markets from that epoch. Cool I guess.

the second book in my post, I edited it. The book by Larry Harris

peep the second book, it’s a huge book about almost everything in regards to exchanges

hmmm.. not sure if this is what you’re looking for but check out “The Complete Guide To Hedge Funds and Strategies” by Daniel Capocci edit: also try “Trading and Exchanges” by Larry Harris

Know Your Weapon Pt 1 & 2 - Espen Haug, if you’ve never read his material before you are in for a treat. This is a magazine article not a book but it’s really good. He goes into detail about higher moment Greeks like charm, Vanna, Volga, etc Gamma Exposure ‘Quantifying Hedge Rebalancing in SPX...

Study up on any fundamentalist who is successful. They always say they’re initially wrong on timing (which is expected). Fundie trades aren’t concerned with the timing of order entry like technical analysis is. So yes you’re correct, but it’s not a “bad” thing for the fundamentalist per se. and...