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whats SML?

I proposed to my wife across the street from there (on the bridge).

Chicago. The Miami of Canada.

I don't know what you mean. If you think you have to be smarter to trade options than to trade other products, you are wrong. Why would you start this thread if you didn't actually want to learn about Des's options strategies? Were you hoping for a free detailed explanation, and when you...

The average bum shouldn't be trading.

I will bet the richest people on here are/were the options guys.

20k is below a rounding error for a good trader and being a rich trader takes less time than mentoring and trading.

you outpriced 99percent of ET.

he’s waiting for your tutorial on how to create synthetic exotics with multiple spreads such that they don’t have infinite gamma. and he’s looking to put the strategy in practice so he can lose 40percent of his account on one trade.

I was told to read Hull and do all the problems. I even bought the teachers guide to check my work. It took me about 3 weeks.

What is risk management but a prediction of the future? If you can’t predict the future with any statistical significance you can’t do “prudent risk management”

last year, the risk profile of the market was very different than today. so that's where the back testing may not matter. i think montecarlo simulations don't do much good. but i can see shocking your book to understand how it would perform in different scenarios. (like vol up, rates down...

i am familiar with GARCH and with Cox-Ingersoll (but only a little bit). At the end of the day you have to predict a market event (rates will go down) and then predict how other factors will respond to that. The best way to predict is to see what happened in the past. You can shock your book...

So how do you simulate that?

because making up the real world is better than seeing how the real world behaved in the past. how do you account for vol-rate correlation in your simulated prices?

the forum is full of threads about this topic. there are two types of firms: those that require you to post capital and those that don’t. This forum’s topics typically focus on the former as the latter typically requires experience (trading for a bank, hedge fund) or a newly minted college...

join a prop firm that will front all or some of the capital for you to trade. You will be paid a percentage of your earnings. You have to be hired first. You have to follow their risk management rules.

1. friends and family 2. Join a firm for a payout 3. start your own firm and solicit strangers for funds (#1 but harder) If those three options aren’t available or you are unwilling or unable to put in the work, then get a job and save enough to trade

and do you get a second chance.

Option spreads suffer from infinite gamma.