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Yes, you'll see that that trading system has a record that spans one whole month. If you put 20 monkeys in front of trading screens there's an excellent chance that one of them will get 20% in a month. That tells you nothing about what the year to year performance will be.

3 years and 2 months. No, it is not realistic.

20% a month compounds to 790% a year. Not one in a thousand among <i>successful</i> traders can do that, with any instrument. You should try a more realistic initial target, like: Don't lose money in the first year.

Where does one find these OIS rates?

Who needs the TSA? We should just encourage every terrorist to open a futures account and trade his own money.

I didn't think I'd ever see someone buy 110k worth of options with two days until expiration. :eek:

Dang. Bond buyers are dumber than I thought.

Actually, you just described a strangle. A straddle has the put and call at the same strike and expiration.

Is Russia even borrowing money right now? If so, from whom? Who wants to lend money to a country that went bankrupt 10 years ago?

I think it's hilarious that people think the crash was just the result of greedy Wall Streeters fending for themselves. Yes, they played a big role, but what about Fannie Mae and Freddie Mac? Those are government created agencies. They bought dodgy mortgages by the billions with laughable...

Financial IQ 110. But I still suck as a trader.

If my interest and principal are paid back with dollars that are worth half of what they were when I bought the bond I consider that to be equivalent to a default. It is no different than if I was paid back with dollars that hadn't lost value but only at 50% of par. So sure, the government can...

No. A market maker is obligated to provide a bid and an ask at every strike for the option chains he's making a market in. They maintain a delta neutral position and for that reason are able to borrow with much more leverage (for hedging purposes) than the rest of us. They make their living...

Agreed, but humans program the computers and run the business. I would say that Jim Simon is a very famous trader and he does it all through computer proxies.

Are there famous option traders who made a fortune <i>other</i> than through market making?

The Nobel Prize went to Black & Scholes because of <i>how</i> they derived the BS equation. Ed Thorp derived BS by calculating the expected value of an option, under the standard pricing assumption (the log price undergoes a simple memoryless, constant volatility, continuous random walk). This...

Options are more complicated. You have to worry about the volatility. I'd recommend paper trading both systems and see which one works best.

Warren Buffett sold his silver back when it was in the single digits and has entirely missed out on the quintupling in gold over the past decade. Just because a guy is smart about value investing in businesses doesn't mean he is smart about everything else.

+1

Democrats are pissed that the rich have so much of the wealth yet they favor mass immigration and illegal immigration which have pushed down wages for the working and middle class and weakened the power of labor relative to capital.