wait, when did we get on the same side of this argument?What? I have been busy schooling you guys in other topics such as basic TA. I did show you the formula, and it clearly shows that otm call prices are inflated.
IV is derived from unicorn farts basically. Also, as mentioned I trade in a world of more profits or less profits. The example you keep confusing is I didn't double down, I just didn't sell according to my plan, and it rebounded and expired worthless.
I told you BS was BS!
- Thread starter wxytrader
- Start date
75% of us are here because we couldn't go pro in some sport, the others i guess are putnam winners. guess which i am. everything is a duel.It is a good friendly debate. We are taking lessons from from both sides.
No need to turn it into a duel?
You lost me at "BS is good because I can use it in business and make money, then I'm not even trying to touch that argument because that's not what I'm talking about"..
In the real world,Trading,not academia,that is all that matters.
Its similar to saying BJJ is flawed as its not terribly effective in standup,but the BJJ practitioner mauls every "decent" stand up striker out there...
Simply put,it appears to be very effective,however flawed.
Now you could make the argument that pure BJJ practitioners have met their match in MMA with guys cross training in Boxing,Muay Thai,Judo,Wrestling. Agreed...
But until you demonstrate that you have come up with a far superior model which takes advantage of BS flaws and "mispricing", BS is as good as it gets...
If you want to be the best,you have to beat the champ
In the real world,Trading,not academia,that is all that matters.
Its similar to saying BJJ is flawed as its not terribly effective in standup,but the BJJ practitioner mauls every "decent" stand up striker out there...
Simply put,it appears to be very effective,however flawed.
Now you could make the argument that pure BJJ practitioners have met their match in MMA with guys cross training in Boxing,Muay Thai,Judo,Wrestling. Agreed...
But until you demonstrate that you have come up with a far superior model which takes advantage of BS flaws and "mispricing", BS is as good as it gets...
If you want to be the best,you have to beat the champ
wait, i just realized on my daily walk that these awards are practically older than I am. did they even let black people and girls do math back then? you are bragging about undergraduate college math awards from 35 years ago as the reason you are relevant today? um, nah.
I ranked top 1 percentile in the NLE in high school. I literally couldn't tell you sh-t about latin except what my latin name was in 8th period senior year. you may call me Raymudus!
ok, so this is what i was saying before, you give me a benchmark to beat and I will do that. I'm letting you set the rules.You lost me at "BS is good because I can use it in business and make money, then I'm not even trying to touch that argument because that's not what I'm talking about"..
In the real world,Trading,not academia,that is all that matters.
Its similar to saying BJJ is flawed as its not terribly effective in standup,but the BJJ practitioner mauls every "decent" stand up striker out there...
Simply put,it appears to be very effective,however flawed.
Now you could make the argument that pure BJJ practitioners have met their match in MMA with guys cross training in Boxing,Muay Thai,Judo,Wrestling. Agreed...
But until you demonstrate that you have come up with a far superior model which takes advantage of BS flaws and "mispricing", BS is as good as it gets...
If you want to be the best,you have to beat the champ
How do you use BS in your world? And I will present you an option to beat it, that is more simple. And if I cannot, I will show you my best results and how BS is better.
I'm letting you set the rules so there's no blah blah blah.
You believe that calculus and linear algebra has changed much in 35 years? South Asians are all of the top 10 spots in the Putnam. You're making an analogy between a dead language and math?
If you're such an overachiever then why are you broke?
LOL,I was hoping you wouldnt ask that. I left the IB world a while ago and we did price off of BS,but I havent used it since . FWIW,I was the trader,not the quant.
I started as a market maker on the trading floors,and I now make markets in selected equities options..No need for any modeling...First come first served.
Its all I do as i have discovered an inefficiency which is slooowly evaorating...
Now,if I was making markets in longer dated options I would use it,despite its "flaws"..
I guess what I am asking you is if your model comes up with vastly different values that are outside the bid ask of the listed equity options??
And if so,would you blast away,delta hedge due to the perceived mispricing per your model??
I started as a market maker on the trading floors,and I now make markets in selected equities options..No need for any modeling...First come first served.
Its all I do as i have discovered an inefficiency which is slooowly evaorating...
Now,if I was making markets in longer dated options I would use it,despite its "flaws"..
I guess what I am asking you is if your model comes up with vastly different values that are outside the bid ask of the listed equity options??
And if so,would you blast away,delta hedge due to the perceived mispricing per your model??
LOL!!!!!!!!!!!
I would phrase it a bit differently,but if one truly has built a better model,wouldnt they be obscenely wealthy???
And at the end of the day,whats a pricing model going to do in the listed markets?
I would phrase it a bit differently,but if one truly has built a better model,wouldnt they be obscenely wealthy???
And at the end of the day,whats a pricing model going to do in the listed markets?
to be fair, that's not a benchmark, but since yall seem to be so adverse to planting a flag anywhere, i'll get back to you.
so you do realize that you need to provide some historical strip of options that we both then value and use, however you use it, and see who comes out on top? would you like to provide that part of the puzzle now? or should i start blind, which sure i'll do it?