I told you BS was BS!

[smacdtrader]

You are missing the point..You claim BS is garbage,and you have seemingly built a better mousetrap.. In extremely liquid markets with tight spreads,it really hard to be off on pricing.
If your model is so much better,you are implying that you are finding pricing discrepencies between your model and BS and delta hedging to capture pricing inefficiencies..

I dont need models for several reasons...

I pick off market makers all day long. I have no idea what Vol is,what the market is doing...
I have traded long enough to know where and when to bid and offer,taking virtually no risk other than execution... No need for any model

More to the point,with penny wide markets,models dont really offer much. How off can one be in pricing??

Last but not least,if I am delta hedging,an approximaton is close enough.I dont need delta perfect,thats not my bet,nor where the money is made.

You claim you built a better model..Lets see it

all interesting points.

except the last one. i did not claim that. i just said if you give me a use case and benchmark, i could probably beat it without BS. i specifically said i would have to do some research to make that happen.

but honestly, this is the most interesting answer from you so far, and makes it more clear what your point is.

 

[smacdtrader]

How would you know?

that's the easy part, they say stuff that you can use later

 

[poopy]

And you can still get fucked

I think getting picked off by the customer would more than likely involve inside info. It's good to be the MMer (DNT client).

 

[poopy]

that's the easy part, they say stuff that you can use later

The point is that you wouldn't know what is legit and what is BS. Your "research" into the field should not be wasted on models when you fail at a basic understanding of the product.

 

[taowave]

I completely agree that one doesnt really need any model, BS included...

Really depends how and what you trade...

My question is what does it show if we choose the S&P 500 as the benchmark and you buy 500 split strike flys as a directional play and hit??

What type of trading do you do,i.e directional,vol etc

Would you quote me 3 year options and or spreads in TSLA for shits and giggles....with no peeking??

all interesting points.

except the last one. i did not claim that. i just said if you give me a use case and benchmark, i could probably beat it without BS. i specifically said i would have to do some research to make that happen.

but honestly, this is the most interesting answer from you so far, and makes it more clear what your point is.

 

[smacdtrader]

He walked all of that back.

i never claimed it to begin with. just like with you models, you assume too much.

sorry too easy.

 

[poopy]

i never claimed it to begin with. just like with you models, you assume too much.

sorry too easy.

He asked to see your vol-model. You stated you don't have one. I stated that you walked it all back.

Too easy.

 

[poopy]

dude cmon. K.

You were broke 4 months ago.

I call bullshit..post please

Apparently won the pick four. He's a troll.

 

[poopy]

BSM = shit. Couldn't calc the 6M forward in his lifetime but he knows it's shit.

 

[taowave]

You lost me...How do you propose you "outperform" BS??? Its a model,it doesnt produce returns..

Are you saying you dont trade options??? WTF is going on???

simple,straight foward,easy to understand??

Is this your idea of joke??

"take short short side without having to sell anything"..

What does that mean????

Wait, so now that you work directly with making a market in options, you don't even use BS because you found another better inefficiency that is based on the data. I mean, dude, that is my very point.

To be fair, I don't have a model. I don't do these things, it's going to take research. My point is simply that because BS violates all the properties of good modeling, I have confidence that given the opportunity I could beat it using sound stat modeling if I could get someone to present me a use case with benchmarks to beat. And if I can't beat it, then well, won't that feel like a small vindication for a few of you.

If I was trading options, which I don't because I haven't finished my analysis yet, I would simply use them as a means to increase leverage and take short short side without having to sell anything. Simple, straight forward, easy to understand. Just the way I like it.