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Not sure if CEO vs actors is a fair comparison. The average income from acting could very well be 5k per year, which has little to do with total average income for a guild member. An alternative example - I hold an AMGA certificate but my income from guiding people in the mountains is...

Furthermore, you can always trade OTC :) Grimm: You know, I want to thank you guys, you could've given us help, but you've given us so much more. Street Sign Worker: [cheerfully] Hey, that's what we're here for, right?

This is going straight to the hall of fame. I feel like dropping to my knees and yelling " I am not worthy! ".

MM hedge delta using stock (in most cases). So, if an MM sells a call, he will instantly buy stock to cover delta. Initial hedging has nothign to do with his convexity position, it's simply negating the directional risk. Now, if MMs were drastically short calls and long puts, they would...

Once again - option market makers hedge their delta exposure at the time of the trade. All they are left with is convexity exposure (theta/gamma, vega etc). So, in this case, the MM sells a call and instantaneously buys delta against it. Once that happends, it is in his best interest that...

(a) Are you saying that option sellers did not hedge the delta at the trade-time? (b) Also, if "they" are trying to paint the tape in favor of the sellers, why not just drop the implied vols and not even bother manipulating the stock price? (c) if you truly found this awesome market...

(a) yes, you are f*cked at least for now, but it does not mean you are f*cked forever (b) you can do one of the following --- Top 10 MBA - best in terms of opening doors and getting the networking going, but very expensive. Can be done part-time. --- MS in finance from a top schoo - lower...

Not true - notional sizes given pundits an ability to write useless news articles, so it creates employment. PS. What's riskier, a 1 year USD LIBOR basis swap with a billion notional or a 1 year SPX variance swap with a 100k of notional?

What newwurldmn said! You current problems are (a) Lack of industry experience or specialized education. Do not mistake punting stocks in your small account with the institutional game. Even with a proper finance education, majority of juniors joining take years to understand what's going...

Yeah, if anything, it's Japanese-style deflation we should be worried about.

All of the above can be trivially accounted for, every MM out there hedges SPYs options with SPX options and vice versa without any problems. In most cases, with simple ajustments/approximations the discrepancies above will not have a material impact on the trade performance at retail level...

The ones I especially like are "Picking bottoms gives you smelly fingers" and "Legging the spread is like spreading the legs - the results are unpredictable".

Short HYG or buy puts on it.

I think I am doing just fine... <a href="http://www.freeiqtest.info" title="IQ Test"><img src="http://www.freeiqtest.info/Badges/www.freeIQtest.info-53.gif" width="127" height="148" alt="IQ Test" border="0"></a>

if you are going to an index desk, in addition to the stuff I mention above, read some JPM/Barcap research notes on variance/vix/vol-derivs.

They do a lot of nasty stuff, don't they? We just have to figure out who they are...

Me or him? :D

NP = nuclearphynance.com

(a) depends on the role, is it AMM or OTC? For an AMM role, you probably want to brush up on your programming, for OTC role it'd be mostly option-theory specific (b) you can't go wrong with Filthys books + Bayard; Hull if you think you might need more "theory" (c) your mileage would be better...

Yes, it has. It's unclear, though, how gold or silver (barring industrial applications) is better then beanie babies, aside from it being a longer-term hype.