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Oh yeah, those small businesses sure are having trouble securing bank loans... In fact, according to NFIB, about as much trouble as they had back in 2006 (based on credit availability and price element of the survey). And yes, of course, it's all for the sake of small business; the banks...

Yep, so it sounds like they paid between 1 and 1.5 ticks for it... That's peanuts, really. More to the point, I have a hard time imagining that this fly was such a wonderful trade.

I always recommend Tuckman for the basics and Antti Ilmanen papers. I think the latter actually contains a LOT of insights.

Look on the bright side, though, Gary Cohn got a super sweet deal (accelerated vesting, etc) AND Goldman stock has been on a proper tear. I am sure it's gonna trickle down to the working man eventually.

While I am not sure about America, the dream team has sure made Goldman great again... Do you hear that "ka-ching" sound? That's the sound of the swamp being drained...

The max drawdown on this trade is just the total premium paid. It's inherently limited downside and the total amount of premium paid is low. It's very much like a lottery ticket.

This is just a put fly, nothing too glamorous... In the past couple of days, similar stuff has printed, also in decent size, trying to pin the strike which corresponds to one Fed hike by June. What one needs to consider is that, most of the time, these things don't work, since they're akin to...

Sorta, yeah... It's just that, occasionally, when you're right on the strike you could save yourself some bid/offer by exercising a slightly OTM option.

I could be interpreting the spec wrong, but the statement that "contrarian instructions are not allowed" suggests that neither of the two things are possible.

It's not about commissions... It's about whose interests the advisor is supposed to serve. There's a class action suit filed recently, illustrating the issue. If you google Wells Fargo and ERISA, you will find stuff.

He's already doing it BIGLY... Making Goldman Sachs GREAT again, in particular!

Lots of things can move bonds... Fundamentally, however, there are only 3 factors: central bank expectations, risk premium and convexity. Data or even flows can drive mkt participants to change their estimates of the above factors, leading to a move in bond yields. You should read at least...

There are some rare specific cases where it could be rational to exercise a marginally OTM option, which may appear suboptimal, but isn't. However. the underlying here is very liquid, so it's probably not worth it to allow such a thing.

Good god, so much righteous indignation, because the exchange has decided to disallow suboptimal exercise on these... The exchange decides what the contract is and they probably don't give a rat's a** that, technically, what they have defined isn't quite right, according to the "letter of the...

That's right... It's quite obvious that "conflict of interest" is a fake issue, so why have a rule to prevent it.

Sure, I was assuming, very broadly, that the rest of the parameters are given by the context of the discussion...

Gonna be YUGE... The bankers have suffered enough! Make leverage great again!

While future probabilities are undoubtedly uncertain, there are all sorts of interesting thought experiments one can perform. In this particular case, the relevant question is something like this: "Suppose you are presented with a 99:1 bet. What percentage of your net worth should you bet?"

To paraphrase... If a stock mkt goes to 0, but there's nobody to to witness it ('cause we've all been nuked into oblivion), does it really matter? St Petersburg Stock Exchange was founded by an edict of Peter the Great...

I would probably agree with you, all things considered... Still, one can't get away from the fact that a) he's made lots of money on a whole bunch of trades he did in 2008; and b) he's made lots of money, period.