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Don't be an asshole (classic noob). I wasn't trying to stop you from trying, by all means, go ahead. Just know what's in front of you. Take a look at Blackadder Advanced World War I Tactics, it makes an excellent parallel to job interviews: === Blackadder transcript below ===== Melchett: -...

>> Masters. >> write about a topic that would possibly help me land a job in market LOL, you're so living in the 70s with this mindset. Welcome to the 21st century "The Horrifically Dystopian World of Software Engineering Interviews"...

Well you still haven't specified. Masters or PhD?

What sort of degree? I would assume masters. Don't get your hopes up on the fact that writing some paper will land you a job, the competition is preposterous. Anywayz, this is not the right forum for academic-related stuff and career projections on it. Try Wilmott forum for that and have your...

My observation with options is that: 1) If you sell an ATM option and try to "stop loss" through buying a further out of the money option, essentially you give up all the profit for protection. So no point stopping the loss when there's no win. 2) Only effective method to stop loss is position...

Well I'll never know if I don't try.

Two important issues I want to address and the problem is they are sort of mutually exclusive: 1) Privacy. 2) Scaling. The first one, privacy. Here's a quote from a Bloomberg article: "[Some trader] has mastered the ageless rule of hedge funds: Asked about some of his successful trading ideas...

Well surely: - Regardless what you lump in step 1, there's a huge question mark between that and "Profit!". - This is all kinda funny :) And speaking of funny... I gotta ask, to be sure. This is humor, right? Lambo's stands for "Lamborghinis" and "muh" is a way of mispronouncing "my". This...

That's an interesting point as it goes against the usual way of thinking. In software development it's the QA (testers) approach. Programmer implements a feature (trading strategy analogy), performs a smoke test in a controlled environment and carefully choreographed steps to show it "works" and...

To clear possible confusions, zero sum game and fair game are not one and the same thing, right? Zero sum game means (afaik), that all available money is distributed among participants. So if there are 10 participants in the game, each puts $10 on the table, at the end there will still be $100...

Here's the way I imagine how it works :D

Yes, also I'll probably open source this part because it's messy (as the data it operates on) and would derive more benefit from peer review and user tests than keeping it proprietary and struggling with yet another unforeseen weird corner case.

I find it simultaneously amusing and sad that you can hold a working trading strategy in your hand and effectively noone gives a shit. Obviously finance has a severe "boy who cried wolf" problem, so many fake profets that it's pointless to join the crowd and preach in the town square: The...

Out of the bat I'd say, why not? Assuming you meant call and not put, spot can go up to infinity, vol can be infinite so of course. But then exception! Tried http://www.option-price.com/index.php with spot = 1, strike = 1, days = 365, interest = 0, dividend = 0, vol = 250% and so far so good...

Well there's pennies and pennies. Some have a market cap of a couple of millions, others (like) this one, nearing 100 billions. I would expect to be able to trade options on an underlier that's worth $100B in the market.

Quite interesting. I sort of "heard" that trading options on penny stocks presents some problems but since I haven't really focused on it, didn't knew what those were. So in summary: 1) The absurd "strike increment" which makes options untradeable unless the stock randomly happens to be near a...

Ok, I got it. Was used to SPX, but strike increment so big for penny stock options is absurd, makes them untrade-able.

So the problem is then the "strike increment" or whatever it's called. It's absurd to have 2.5 increment for a stock that trades at $6, essentially 50% of stock value. Wtf, who came up with such stupid rules?

Is it something I'm missing here or are the bid prices in the following picture lower than their intrinsic value? Spot (underlier) price: 6. Intrinsic value for call: (spot - strike) = 6 - 5 = 1, call bid = 0.9 (lower than intrinsic!) Intrinsic value for put: (strike - spot) = 7.5 - 6 =...

Got it, thanks for the tip.