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You bought vol when it was bid up, partly because of the recent 20+% drop in spot. After that, the stock did not realize much and people got rid of it. This type of stuff happens.

Since you’re an engineer, just do a simple perturbation-based explanation :) Time: -15 cents Spot: 45 cents IVol: -150 cents Which matches the prediction by Greeks: 10 days of decay times 9/365 = -20 cents 2.06 dollars in sport times 0.2 = .4 46-57 vols times .13 = -1.44

Better that a 300-dollar pair of shoes as a chew toy :)

Well, that’s where the gold is buried :) PS. I LOVE your puppy!

As I said, the negative selection is also a real thing. This said, a retail trader might not notice it amongst other noise in his book, but if you do anything remotely systematic it will add up. The real question is which cost is greater, commissions or suboptimal execution.

That’s not exactly true. A delta hedged player and a directional player might be on the opposite sides and both can be right (or both can be wrong).

Well, for the first year he’d have a guaranteed total comp. I met him for a drink after he emailed me with a “no”. I think he wanted to do ML-related stuff and, in general, felt that the intellectual challenge in CS is far more obvious. Main gripe of CS people in financial markets is that...

The “pay for flow” model is not about making money on filling the customers at prices worse than NBBO. It’s about being able to decide if you like to take the order or not before it gets exposed to the general market. Some of those trades will be delta trades (e.g. OMM might want to get long...

There is information in it, but it’s a bit of work to unravel what exactly it means. Can’t say much more about it, for obvious reasons

I am pretty sure somewhere there is a fine print (like I heard that only non-directed market orders are free, for example).

Out of all painful things I have done, I have never ran a single name options book as a market marker. @newwurldmn has, I am sure he will chime in, but my sense is that in real life this situation will have a variety of outcomes. PS. I have and still do trade a lot of SNO as a customer...

Could you give us a summary? It's 25 minutes long

According to the https://goo.gl/XdJFTu about 130-150k coins trades every day. So 1k coins is less than a percent of ADV and will have a negligible effect. LOL. If you buy an S&P futures, you don't think the stocks will go up? PS. Personally, I feel bearish simply because I think rally fatigue...

A hypothetical situation. Charlie submits at bid for an option, exactly mid-market, via Interactive Brokers. Alice offers the very same option, also at mid-market at Robinhood brokers. What do you think will happen?

You do realize that the only reason why trades are free is because they sell your order to high frequency market makers. This means that you can’t do certain types of orders for free and the ones that will be free are very likely to result in worse fills.

I have interviewed a guy that decided to go to Google (or was it FB, I don’t recall) for less than half of what my firm was going to offer. We offered 250 total and he went to google for 120. Over 5-6 years of the “expected life” the difference adds up to a fair bit of money. Over the lifetime...

Because failure does not mean a guaranteed money-losing. Instead it’s going to be neither here nor there and going to slowly bleed transaction costs.

To quote something I head from a lady-friend - "a free dinner is usually a prelude to getting fucked".

Actually, 1.5% per year is a fairly reasonable cost for a piece of mind. He's running 15 yards and is mostly probably roughly long the broad market so there is plenty left for him and his clients. Yeah, he's been in the markets longer that I have been alive and is managing a pretty successful...

Because I was being a cocky moron. I was not looking to preserve capital, I was predicting a crash and thought I’d get long at the bottom. Well, at least I did not unload it all, just about half of it. PS. Watch now as people show up and say “but dude, it was clear the market was going up!”