1000% Implied Volatility In GameStop

[Butterfly]

take it to Tabb and let us know how it went

 

[Aquarians]

Dude, let me help you through your 4-step newb/vol-retard journey.

1) BSM is incredibly useful in relative value (skew/smile/stickiness).
2) You'll never utilize the above.
3) In practice; (listed, vanilla-vol) BSM cannot be used to stress tenors in event vol -> time spreads, combos, diagonals. That fact alone leads to near-arbitrage conditions.
4) You were born dumb and impoverished.

Read first and the last and assumed everything else is somewhere in between.

#1: ++
#4: rofl. No offence man, he's good.

 

[newwurldmn]

take it to Tabb and let us know how it went

still waiting for that article....

 

[newwurldmn]

Dude, let me help you through your 4-step newb/vol-retard journey.

1) BSM is incredibly useful in relative value (skew/smile/stickiness).
2) You'll never utilize the above.
3) In practice; (listed, vanilla-vol) BSM cannot be used to stress tenors in event vol -> time spreads, combos, diagonals. That fact alone leads to near-arbitrage conditions.
4) You were born dumb and impoverished.

he’ll die poor clutching his schwessor CFA materials.

 

[Butterfly]

see if you were really a CFA chartholder like you claimed earlier, you wouldn't be so obsessed with your CFA jokes

god, what a little fraud you make, how are your $GME holdings btw, still winning?

 

[newwurldmn]

see if you were really a CFA chartholder like you claimed earlier, you wouldn't be so obsessed with your CFA jokes

god, what a little fraud you make, how are your $GME holdings btw, still winning?

Still waiting for that tabb article.....

 

[Butterfly]

Still waiting for that tabb article.....

it's on the Journal of Portfolio Management, need to dig through my archives

Will find it, just so you can shut up and apologize

 

[KINGOFSHORTS]

And this is why I always have black swan insurance on my short SPY options trades. Just in case some crazy shit happens.

 

[hypercube]

you can just take the logarithm of 1 plus the price, then it wont be negative. there are many books that discuss this.

You missed my point completely as your answer is completely irrelevant to what I (or the OP) am saying.
I was saying that OP's reasoning is incorrect because the log of the price can perfectly be negative and the model is applied to the log, so nothing wrong with that. It is not true that the model predicts a positive probability of a negative price.

 

[Saltynuts]

When you see implied vols this high you just NOT its time to sell short straddles. You can even sell deep in the money ones very profitably, and have a TON of protection no matter which way it breaks...