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Everybody knows there aren't enough assets to back them.

I do not like the ACLU suing everybody who tries to enforce immigration law, or anybody who dares to express his Christianity in public, but they are right on the unconstitutionality of the Patriot Act and the need for open government. So the ACLU is a mixed bag. If it had more strict...

It ought to, though.

Why should the future volatility depend on the strike price? That makes no sense. And if our flustered market maker has in mind a "multitude of expected future volatiilites", how does he decide how to price even a single option? Does he give it a multitude of prices?

Almost everything sensible these days is racist. Reducing immigration both to protect American wages and to protect the environment by stabilizing our population is racist. Deporting people who entered the country in violation of our immigration laws is especially racist, to the point...

I note that different strikes for the same month and underlying have different implied volatilities. Given that future volatility has nothing to do with the strike price, and given that there can only be one "expected future volatility", it is not coherent to say that each of these implied...

The only candidate in either party I trust to not start a war with Iran is Ron Paul, the Republican that all the neocon Republicans hate. jakejones no doubt hates Ron Paul too, which is an excellent reason for anyone with good sense to vote for Ron Paul.

I wonder if the super funder of every left wing cause, George Soros, is willing to admit that he's in the 1% (actually, the 0.01%).

By doing his best to estimate the future volatility of the stock. But implied volatility is a different thing -- it's whatever you have to plug into Black Scholes (or it's Americanized equivalent) to get the known price. If you don't already have a known price you do not have a known implied...

If the market is so illiquid you can't even get the intrinsic value of your option then it makes sense to exercise your option and sell the stock (if it was a call) or buy the stock (if it was a put).

I fully agree that Fox News and MSNBC are both destructive forces in our society.

Yes, diamonds are weird. Gold is gold, a fairly rare element. Diamonds are carbon, a cheap and common element. It is now possible to manufacture gem quality diamonds at relatively low cost. But the diamond industry has convinced people that if diamonds are extracted from a mine they're...

His point is that it's completely circular to say that the price is correct based on implied volatility, when implied volatility is determined by what the current price is.

Those would be excellent things for him to put on his own credit card.

This is like proving that atheists are depraved mass murderers by putting forth Stalin, Mao, and Pol Pot as examples.

If more deficit spending will fix the economy then run up your own credit card. Advocates of spending money we don't have should have to pay the principal and interest, not me.

Does he ever do anything with options other than sell puts to get stocks cheap?

On the matter of H-1b workers, your are correct. Both parties are equally guilty. On illegal immigration, while there are some pro-illegal immigrant Republicans, like Rick Perry and Dick Armey, 95% of all congressional opposition to illegal immigration comes from Republicans.

Obama had us fight on the same side as Al Qaeda in the war against Qaddafi (and both sides were too ignorant to know that "Q" is supposed to be followed by "u"). We should not nuke anybody, despite what mad dog jakejones says, but should instead just stay the hell out of every single Middle...

Who favors importing millions of illegal immigrants to keep working class wages low, and millions of H-1b workers to keep middle class wages low? The Democrats. Who wants to raise my taxes? The Democrats. Who has steadfastly stood up for the over generous public employee pensions...