How are options actually priced?

Quote from FullyArticulate:

On "Triple Witching" day, the leaders of the US, Russia, and Burkina Faso gather around a Ouija board and fill in a massive Excel spread sheet.

"Quadruple Witching" is when they include France.
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I thought it was a rotating position. Next time It's North Korea.
 
Quote from Eliot Hosewater:

I thought it was a rotating position. Next time It's North Korea.
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Normally, it would be. However, just this week, North Korea tested the feared "penny option pricing" system, thus destabilizing the entire options community. Only the US has used penny options in actual trading, and has fought hard to prevent penny option proliferation.

It's more likely Venezuela will take the rotating position. Unfortunately, filling out the spreadsheet will take twice as long due to repeated complaints about some kind of burning smell.
 
Options is a fools game and its rigged by some guys in a back room over at Goldman Sachs. Now they have a Goldman guy as the treasury secretary so no one will figure out this clearly rigged game.

Ever wonder why there is always so much options activity right before they announce a buyout? Yep. Its because those Goldman guys are at it again. Rigging up the game so they come out on top.

Now I know there will be some people who greatly doubt this or even think I am crazy for mentioning this. Some people might even think I am sarcastic.

Oh no. What I state is fact. Oil is going to $25 per barrel. The options are rigged by some shady dudes at Goldman. Your house will soon be worth nothing. Cheers.
 
Quote from eagle488:

Options is a fools game and its rigged by some guys in a back room over at Goldman Sachs. Now they have a Goldman guy as the treasury secretary so no one will figure out this clearly rigged game.

Ever wonder why there is always so much options activity right before they announce a buyout? Yep. Its because those Goldman guys are at it again. Rigging up the game so they come out on top.

Now I know there will be some people who greatly doubt this or even think I am crazy for mentioning this. Some people might even think I am sarcastic.

Oh no. What I state is fact. Oil is going to $25 per barrel. The options are rigged by some shady dudes at Goldman. Your house will soon be worth nothing. Cheers.
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Oh god, what should we do? WHAT SHOULD WE DO!!? :D

You're joking right?
 
Quote from eagle488:

Options is a fools game and its rigged by some guys in a back room over at Goldman Sachs. Now they have a Goldman guy as the treasury secretary so no one will figure out this clearly rigged game.

Ever wonder why there is always so much options activity right before they announce a buyout? Yep. Its because those Goldman guys are at it again. Rigging up the game so they come out on top.

Now I know there will be some people who greatly doubt this or even think I am crazy for mentioning this. Some people might even think I am sarcastic.

Oh no. What I state is fact. Oil is going to $25 per barrel. The options are rigged by some shady dudes at Goldman. Your house will soon be worth nothing. Cheers.
More...

What about hedging using options? I must admit I've never traded options and still am looking into them, but primarily as a hedge.
 
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