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Lol, with an S&P 500 futures contract, obviously.

SAC was (and now .72/Cubist is) a huge fund with hundreds of portfolio managers running a variety of strategies. It's silly to assume that every single one of them was trading on inside information.

Chuck Rhodes got fired recently :)

You think the share of batshit loons on this site is higher then the general Internet average?

You have to assume reasonable interest rates, of course.- Historical average in the US has been around 5.1% with inflation rates on average 2.2%. So really to be drawing 75% of the 40k a year A needs about 650 grand.

RFQ-style market has it's purpose. SPX options are primarily an institutional market and most institutions trade tied. As a PM at a large fund, I can call my coverage and they'll quote me a million vega tied in a matter of seconds. Not a pedestrian size, but nothing out of the ordinary. I'll...

I still don't see any "mathematical flaw". Yes, it's an option that expires at a different time of the day which adds another quirk. What exactly prevents you from implying volatilities using properly calculate business day-fraction? You are trading volatility surface, so make a proper...

Pros and cons of shorting is, actually, a far more interesting conversation then "when bitcoin will go to X" :)

In terms of victimization rate, which is a standard metric when comparing various forms of crime. Obviously, it has it's drawbacks, but that's what DOJ uses and publishes. Notably, incarceration rates for cyber-crime are much lower then for regular property crime. Combining the two facts makes...

Yes. Also, for stocks you get cute little features like internalization off exchange saving you money, for example.

Sorry, just noticed this - what exactly do you mean by "flawed mathematically"?

Actually, it's the fact that bitcoin is so convenient for illicit activity that gives it so much potential. I was recently surprised to find out that incidence of computer-related crime such as identity theft was at almost the same level as regular crime (DOJ data was from 2015). That means that...

All the GS guys have done is ranked the equity world based on short interest * market cap. That information is public (every Bbg "des" screen has short interest) and has very little predictive value. The Business Insider is picking it up this time around as a "juicy story". Blah.

It certainly doesn't mean he's good for the country or that he's smart. It only means he's popular among the plebs. Don't forget, the people that voted for him can barely find the US on the map.

Dude, you should only hire expensive hookers!

Exactly. When I bought it, I paid about 3 grand for 5 coins and my basis for this investment was similar to many other early stage investments - it looks highly convex given it's potential. Is it a guaranteed hit? No, but then again nothing in life is certain except death (taxes can be cheated).

You can make a similar argument about many things that we value by consensus. Something being limited does not make it valuable by definition. It's the perception of value in your counterparty. The moment that perception changes, these things lose value. Humans are very good at coming up with...

I have said before that 30-50k is a reasonable valuation for something like bitcoin assuming it's a "currency of crime". Simple logic - assume that bitcoin is only good for illicit dealings, such as buying drugs over the Internet. Shadow economy (a.k.a crime) accounts for 10% to 15% of global...

There are several good reasons to keep the AM expiration around. First of all, it expires consistently with the futures. Second, regular VIX expiration refers to AM expiring SPX.