I told you BS was BS!

[taowave]

Chef,ive known you for awhile..
I think you should start trading the underlying, small,and see what you are made of.If you aren't decent at that, option spreads won't really help.

And give up the daytrading

You are better than that

Wow, this is really good, no one has ever given me such a comprehensive treatise.

You have given me plenty. Thank you very much.

I am a one trick pony, only buy lottery ticket calls/puts. I have been trying to learn spreads and butterflies but have not been able to make any real progress.

Why butterflies? This: slingshot hedge (butterfly + extra naked long).

 

[ktm]

Yes, because crows will fly away before the rain comes. Causation and effect. Math is just language used to prove an idea or a theory. The real genius is coming up with the idea or theory. Stephen Hawkings would come up with a theory on relativity and he would then run it by the mathematician to see if it was correct.

"Hawkings"? LOL

 

[smacdtrader]

I told you guys that options are mis-priced. Now there is math to back me up.

Actually if you read any of the original B-S papers or any interviews, etc from that time period, they recognized from the beginning it was trash. We've know for 100 years that asset volatility is non-stationary, which is a major violation of the most basic assumption of B-S. Several other traders considered the B-S models, which is a modification of the Boness formula, way before B-S, but because they were actually trying to make money in the market and not sell degrees to a generation of Financial Engineers, they immediately abandoned what B-S eventually sold to the world.

The only good thing to come out of B-S is the VIX. The VIX in fact is a realization that IV is total garbage and the IV index (forgot what it was called) was a total failure. So the smarty pants over at CBOE I guess, decided to dig back into some legit math and create an index out of the Expected value of 30 Volatility of the SP500, and the VIX was born.

 

[taowave]

If its mispriced,then you should have no problem making markets and obtaining obscene wealth..

Last I saw you were selling 1 lots on 18 dollar stocks and having the underlying move against you by 30 percent,despite your mastery of the Elliot Wave

What do you mean? I just said the probability of being itm/otm is completely skewed wrong with options..so the whole options market is mis-priced. Pick any option and it is mis-priced.

 

[ironchef]

And give up the daytrading

Give up day trading? No way sir.

Scalping is very addictive, trading tick by tick is like playing Pac-Man or Tetris, once start hard to stop.

Besides, I love my free Big Mac.

 

[smacdtrader]

eesh! please don't scalp. oy! i'm going to light a yerzhite for you. i don't know you but some people here obviously like you. heed them!

 

[wxytrader]

If its mispriced,then you should have no problem making markets and obtaining obscene wealth..

Last I saw you were selling 1 lots on 18 dollar stocks and having the underlying move against you by 30 percent,despite your mastery of the Elliot Wave

Actually it was three lots and I'm getting wrecked right now with some open puts but this strategy I'm employing is for premium so not charting at all. Just eyeballing it I knew I'd probably be giving some premium back, but it's more important to know the system can work in the worst case scenario .See the difference between me and you guys. You guys look at at trading in terms of profits and losses where I look at it in terms of more profits or less profits.

 

[Slow Learning Elf]

Actually if you read any of the original B-S papers or any interviews, etc from that time period, they recognized from the beginning it was trash. We've know for 100 years that asset volatility is non-stationary, which is a major violation of the most basic assumption of B-S. Several other traders considered the B-S models, which is a modification of the Boness formula, way before B-S, but because they were actually trying to make money in the market and not sell degrees to a generation of Financial Engineers, they immediately abandoned what B-S eventually sold to the world.

The only good thing to come out of B-S is the VIX. The VIX in fact is a realization that IV is total garbage and the IV index (forgot what it was called) was a total failure. So the smarty pants over at CBOE I guess, decided to dig back into some legit math and create an index out of the Expected value of 30 Volatility of the SP500, and the VIX was born.

And yet every market making firm out there is using BS for pricing and hedging. They must be complete idiots, right?

 

[taowave]

Whats your day job?? Comedian??

You may be my favorite poster

Actually it was three lots and I'm getting wrecked right now with some open puts but this strategy I'm employing is for premium so not charting at all. Just eyeballing it I knew I'd probably be giving some premium back, but it's more important to know the system can work in the worst case scenario .See the difference between me and you guys. You guys look at at trading in terms of profits and losses where I look at it in terms of more profits or less profits.

 

[wxytrader]

Give up day trading? No way sir.

Scalping is very addictive, trading tick by tick is like playing Pac-Man or Tetris, once start hard to stop.

Besides, I love my free Big Mac.

How much do you pay in fees per trade? If there are no fees I'd be scalping all day long, but f*** fees just kill it. I don't mean I'd sit there all day long, but I'd like be eating a sandwich that I'd wander in there and pull a quick trade. Yeah, kind of like a video game. Maybe I should open up a Robinhood account for scalping.