I told you BS was BS!

[smacdtrader]

Will that prove that BSM is shit?

I don't care about your trades any more than you care about mine. Personal account. Family office. Yes, my best run/year to date:

https://www.elitetrader.com/et/threads/dests-everything-journal.332136/page-11#post-4859112

very sexy account my friend. so just around 4% for the day is best day of the year. it just so happens i put a whole 7K in a personal account this weekend. I'll post for you as soon as i get my first 4% day.

 

[Slow Learning Elf]

I would phrase it a bit differently, but if one truly has built a better model, wouldnt they be obscenely wealthy???

In fairness, there are examples of people using better models and making big bucks. One case study would be the guys at BoA who started using UVM for corporate call spreads. But this usually is in non-listed space and mostly driven by ability to manage these risks better

 

[smacdtrader]

Plebeian, you mean?

(Latin School of Chicago).

grammar nazism? really? i know you are better than that.

 

[smacdtrader]

Why would you enter into an argument about a topic of which you have zero knowledge?

a. it's fun

b. it's a way to learn if the people you are arguing know what they're talking about

 

[poopy]

grammar nazism? really? i know you are better than that.

You made a point to humblebrag about your classical ed. I'd probably leave that out next time.

 

[taowave]

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

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.

 

[poopy]

b. it's a way to learn if the people you are arguing know what they're talking about

How would you know?

 

[poopy]

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

He walked all of that back.

 

[poopy]

In fairness, there are examples of people using better models and making big bucks. One case study would be the guys at BoA who started using UVM for corporate call spreads. But this usually is in non-listed space and mostly driven by ability to manage these risks better

OTC and customer is known.

 

[Slow Learning Elf]

OTC and customer is known.

And you can still get fucked