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Look at it this way... If it's your own money, why do you wanna lend it to a commercial bank by depositing it in your account? As soon as you've done that, everything that you do is subject to the terms and conditions that define your relationship with the bank. That relationship will change...

In general, this is all not surprising and I dunno what all the excitement is about... Obviously, physical cash is a problem in a world of heavily negative rates. CBs will try to discourage the use of cash as much as they can (not that they really need to make a great effort, given how...

If it's realized volatility you will be using, what is your in-sample period? Or will you be using implied vol? This is a good project, BTW. Best of luck!

Oh, good lord, not more of this ZH news...

Marcos Lopez de Prado is the guy who was quoted by the OP (I assume it's him).

I've known Marcos for years... He's not an academic, or rather not just an academic. He's, of course, 100% correct in his characterization.

Not sure I'd subscribe to this sort of logic... Certainly not in the mkts.

The point I was trying to make was that your position is, by construction, a strangle in the first place. Indeed, unless I am having a senior moment: Long DITM call = long underlying fwd + OTM put Long DITM put = short undelying fwd + OTM call Hence: Long DITM call + long DITM put = OTM call +...

Just to dot them i's and cross them t's, this here is a simulated journal, right?

Brilliant! Why didn't anyone think of that? Oh wait...

I would strongly suggest you read about put-call parity, to begin with... Then, as the next step, I would read about what's known as a "strangle". You can proceed from there. And don't worry about "not one willing to let you out before expiration", as that's not how options work.

I actually said that the author of the article was very confused, rather than the author of the thread.

This is a thread of pure (simulated) awesomeness!! The OP will be a (simulated) multi-billionaire in no time at all.

Well, today, as well as in previous times, it is to deliver a certain return on equity to their shareholders, by profitably doing their thing...

I look fwd to reading about your incredible success in the papers very soon...

I don't need to ask the banks, but then I didn't state anything about how banks use the money.

Ah, we have ourselves another sim-inspired, starry-eyed master of the universe here... Best of luck to you! Have you considered what 30%/month gains are going to do to your "AUM"? Have you then contemplated what that means for the sizing of your "strategy" vs the mkt?

This is extremely curious... What do you think banks' "own purposes" are?

I couldn't possibly know an answer to this.

The author of this article is very confused...