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Probably a good idea in your case... isn't it nap time for you and your granddaughter?

Got some time on your hands? No neo-Nazi biz to attend to?

Record? The prem is less than Third Point's daily VaR.

Nothing wrong with Nadex if you're trading dailies. Less edge loss in listed vanillas, but no opp to trade dailies unless you limit yourself to trading Friday. The spreads are wider with Nadex, but the fees are no longer ridiculous.

Oh BTW, please STFU. You would be the first black man to defend Zimmerman. You've exceeded the irony and ignorance limit on this site (imagine!). You're as white as snow. Idiot.

IB is saving you from yourself!

You live in the 'hood, Bro? You seem to know a lot of brothers. Edit: Oh snap, I missed your parenthetical. You ARE a black dude and you trade from the 'hood? On another note... Zimmerman will never go through with it, or the fight itself will be gimped with huge, non-regulation gloves...

A few years back the spreads were a few hundred in initial req. Unreal.

Yeah, my thoughts. Why make it public but release no info about your health unless it's a stage I basal cell or something.

I can't imagine that I could dislike a public figure more than I did before this.

You make a public statement that you have cancer but don't give a prognosis or type?

Yeah, you can use it. Understand the difference between delta and probability. The idea of a large number (contracts) of narrow verticals to solve for the payoff. The analogy of the vol-swap replication using a strip of options used to replicate. Nobody does it when you can trade the var-swap...

I use it all the time when modeling vanillas and 2*delta for pricing touch options (shit approx). It fails when pricing local (approaching the barrier) and forward. As vols rise(fall) deltas converge(diverge) to(from) ATM values. Would you want to buy a flat-vol modeled 30/100 digital for a...

jackieo79, The delta = digital price is an approximation that nobody disputes, but you cannot ascribe the model delta to a digital probability, period. You stated it was inviolate only to change you tune. You stated that the vertical and the digital are "completely different instruments" which...

No, I didn't reply to you. I posted the Nelken "discrete vertical" parse to the thread. Please show me where I quoted you. Yes, I saw sle's (later) challenge and took you off ignore to read your comical response. it was worth it, as you did not disappoint. You stated that verts and digitals are...

An ATM call (zero carry and divs) has a delta of 50. Go ahead and check every optionable ticker in the SP500 and you'll arrive at the same delta.... 50 per contract. Yeah, you'll get some stuff that will skew it a bp or two due to going ex-div during the contract duration, but rates are at zero...

I had to take you off ignore to see if you'd respond to sle and of course you redact virtually all of your statements. sle: 1 European digital can be priced and risk managed as an arbitrarily tight call spread (or put spread, same thing). sle: 2 Nadex or any other provider will use...

A 0.10 wide theo vanilla vertical on a $30 ticker will be close.

Izzy Nelken, 2000 Assuming a digital call paying $1 if the underlying is above $100 at maturity, we compare it with a portfolio consisting of a long position in a vanilla call (K = 100) and a short position in a call (K = 101). The replicating portfolio pays $0 below $100 and $1 above $101...

I can't find Nelken's book on exotics, but the maths are there (and in my sheet) for OTC replication. I'll transcribe it when I find it. it's lacking linear equations so I can't post the symbology.