I told you BS was BS!

T
wxytrader said:
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.
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Totally, got me pegged! Lol.

What category does "getting totally wrecked" fall? Profitss or less profits?
 
Slow Learning Elf said:
And yet every market making firm out there is using BS for pricing and hedging. They must be complete idiots, right?
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First, yes, many many many of them are idiots. Contrary to popular belief, the actual smart people in the world don't work in finance or trading, they work on important problems. Or they do finance for 10 mins make enough to live on forever and move on.

Second, theses firms use BS as a short hand to describe what the current price implies the volatility will be according to the model. They do this because transformation between price and iv is a 1 to 1 mapping. Thus when i quote iv I quote price and vice versa. Which btw is a completely inane concept if you're underlying assumption is that volatility is constant. They know the tools of the trade and exploit basic zealots to make a profit, not off the model, but off those who use the model. If they are actually using it to take directional bets which is its stated use, see "First".
 
You pay fees??

How much?

wxytrader said:
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.
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smacdtrader said:
First, yes, many many many of them are idiots. Contrary to popular belief, the actual smart people in the world don't work in finance or trading, they work on important problems. Or they do finance for 10 mins make enough to live on forever and move on.
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Lol. I think what's more accurate is these smart people think they can come and beat the market, get their asses handed to them and go back to their careers.

I've always said you got to be a little bit stupid to make money in the markets.
 
You are talking about lazy degenerate gamblers

Go to NY,get an interview with Goldman or Millennium and share your thoughts with them..

5 minutes..ill take the under before you are booted

wxytrader said:
Lol. I think what's more accurate is these smart people think they can come and beat the market, get their asses handed to them and go back to their careers.

I've always said you got to be a little bit stupid to make money in the markets.
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Lol. Second sentence is for the ages. No doubt about it.

But totally off on the first. I can point to like 5 or 6 that I know personally, and all by far the smartest people I know, except the ones that (right or wrong) find this whole world detestable.
 
smacdtrader said:
First, yes, many many many of them are idiots. Contrary to popular belief, the actual smart people in the world don't work in finance or trading, they work on important problems. Or they do finance for 10 mins make enough to live on forever and move on.
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It really depends on your definition of "smart". There are more Putnam and IMC winners at Citadel than at any company that is solving real-life problems. For better or for worse, finance attracts a lot of talented people because it pays and usually pays immediately.

smacdtrader said:
Second, theses firms use BS as a short hand to describe what the current price implies the volatility will be according to the model. They do this because transformation between price and iv is a 1 to 1 mapping. Thus when i quote iv I quote price and vice versa. Which btw is a completely inane concept if you're underlying assumption is that volatility is constant. They know the tools of the trade and exploit basic zealots to make a profit, not off the model, but off those who use the model. If they are actually using it to take directional bets which is its stated use, see "First".
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I love it how you talk with complete confidence about things you have no idea about. You would make a great startup founder.
 
smacdtrader said:
Lol. Second sentence is for the ages. No doubt about it.

But totally off on the first. I can point to like 5 or 6 that I know personally, and all by far the smartest people I know, except the ones that (right or wrong) find this whole world detestable.
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If you're making money in stocks, you're not going to say I've had my fill and go back to being a scientist or helping the world lol. Smart people typically don't make money in stocks. If you're talking finance, that's their business. Of course, if you go to Goldman Sachs you're going to find sharks.
 
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