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Yeah, my hindsight book is doing great too!

Excuse me, it's not Haward, but HaRward! It can also be spelled Hayward, Hardyard and Hoeward. PS. Google Chrome apparently recognizes Harvard as a dictionary word, what a shame...

Actually, I think in real time AMM systems actually look at the contract-level pull/push and bring the rest of the surface in-line. PS. Also, when balance sheet is hard to come by, vol for ITM options on both sides will deviate from OTM.

(a) if this is a first-loss provider, please state that explicitly (b) what is the post-leverage split, please? Thank you.

It depends. Some funds have a very tight stop (e.g. Bluecrest has a 4% stop), some would force you to reduce risk but not pull the money out. The general thought is that any draw-down larger then 10% is "catastrophic" and the trader is done and out, but it all depends on your contract, your...

That's not what he's saying, but it is nearly always true. For the same strike it's driven by p/c parity, obviously, and will be true always (except when U/L is hard to borrow or when there is a strong demand for funding). For different strikes this is usually true because level of...

Are you saying that you actually make money trading? I still can't figure out if you are a cheat or a bloody clown...

The banks must be super-unhappy about it, if it's true - clearly most people would keep their money in cash and only deposit enough to cover current bills; as an alternative, you would keep money in an off-shore account.

Well, pretty much every statement there is a truism. The overall quality and desire to learn is yet another question. For example, I've recently joined a hedge fund, but my junior trader decided to stay at the old shop (idiot). Since most of the work now is development and project-driven...

That one is interesting. It would be intuitive that most alpha comes from selling some sort of risk premium, in case of delta-one traders it being liquidity risk premium. I would also say that that statement disagrees with the fact they most use limit orders, not market orders. A simple...

That's only in the New York City and you have to be a union member. Sanitation workers have a great gig too, but you can't get that job either. I'd make the following "key" statements: (a) the right education will teach you is how to learn new things, which is very hard without the right...

I am making an assumption that you are a liquidity provider, no assumption on your beta position. In essence, you are a behaving as if you are long gamma (scalping the noise) but are short convexity at the same time. So it would be surprising for me if you, for example, made money in the week of...

I wish I was little bit taller I wish I was a baller I wish I had a girl who looked good I would call her I wish I had a rabbit in a hat with a bat And a six four Impala

If anything, he'd make money if the curve inverts (if I am reading him correctly, he's short the far end and long the front). What would hurt him is a massive bullish steepening of the term structure.

I am saying exactly what I am saying. You are not the first and not the last one to think that stat arb and short vol are well paired. However, the fact that your strategies are positively correlated with VIX does not make them long convexity that you are already short. Should there be a...

Why would you need someone to program it for you and make it into a public service? Just open a real account with 10k and in a year you'll be living in a house of gold and f*cking a different supermodel every night...

That's a way to totally destroyed in a fully correlated market blowup. Trying to proxy-hedge a negatively convex strategy with a delta-one strategy is a recipe for pain, sooner or later. I will (yet another time) quote my old boss:

What he means is that he likes being short vega on longer dated options. Implied vol is usually higher on longer dates, so you are selling more expensive vol this way. Obviously, the draw back is that if you are protecting yourself by buying shorted dated options, you going to decay.

I like back-end convexity myself. Especially on Latino brunettes.

The famous (actually, infamous) MSFT trade done by JPM in early 2000s was probably biggest vanilla equity option blow up I've heard about. It was on a long vol position.