Continous hedging as a rachet device to lock-in profits

[botpro]

it was 20 years ago ... you don't really think I keep papers from that time just in case some nutjob on the internet might want 'proof' of that lol
I never keep papers older than five years for that matter on anything ...

This explains much... ;-)

 

[cvds16]

that you are a genius ?

 

[botpro]

it was 20 years ago ... you don't really think I keep papers from that time just in case some nutjob on the internet might want 'proof' of that lol
I never keep papers older than five years for that matter on anything ...

You are off-topic here with your personal cr*p story...

 

[cvds16]

you were the one that was asking about it into detail ... I was just replying ...

 

[botpro]

you were the one that was asking about it into detail ... I was just replying ...

You have answered nothing, you are just spamming the thread with your idiotic single line "comments"...

 

[cvds16]

read this: this: and this: in the end you might find some things out ...
seriously doubt though you have the brains to understand the above ...

 

[Martinghoul]

cvds, you need to let this one go... The OP appears to have gone "full retard".

botpro, you need to stop. You've got several people telling you something. At the very least, it would be wise to pause and consider the message.

 

[botpro]

Right, sorry, let me respond with a little more detail, so that maybe you understand...

Firstly, pls make up your mind whether you're a mkt maker/bank or something else. There is obviously a big difference.

That's you saying, the same you who wrote this nonsense:

Amico, I think you've missed the point of this article... I don't need to read it fully to appreciate your unfortunate misunderstanding. The article discusses a setting where a bank (i.e. a market-maker) collects a premium for selling an option. This premium explicitly includes bid/offer and the purpose of dynamic hedging described is to retain as much of this bid/offer as possible with as little risk as possible.
Now lemme ask you, are you a bank? Are you in a position to charge the mkt bid/offer?

Secondly, if you actually think a tiny bit about what I said, you should conclude that I didn't argue that hedging can be used only by market makers. So I dunno whose argumentation you're referring to here, but it sure isn't mine.

See your own text above...

Finally, let me make my point very clear. Hedging in the context of liquidity provision (which is what mkt makers do) is what the article that you linked describes. The context for you or a non-financial company XYZ is very different, since you're price takers. This means that hedging, if you decide to engage in it, works somewhat differently. It doesn't imply that you cannot or will not hedge.

You seem to be much fixated on the hedging of market-makers, I OTOH mean hedging in the general case, and primarily not for the market-maker case...

 

[botpro]

read this: ...
in the end you might find some things out ...
seriously doubt though you have the brains to understand the above ...

Don't spam the thread with your cr*p advertisements!

You was told that here enough literature is already available.

 

[Martinghoul]

That's you saying, the same you who wrote this nonsense:

See your own text above...

You seem to be much fixated on the hedging of market-makers, I OTOH mean hedging in the general case, and primarily not for the market-maker case...

All rightie then, this is where I give up, as well... This is, like, "hardcore retard" mode right here.