New invention for the derivatives market - How to profit of it?

VolSkewTrader · Aug 20, 2020

This is your methodology which you stated earlier:

"lognormal is used for pricing the options (ie. calculating the premium), and normaldist is used for FairPUT computations. This is the correct method, as I first tried hard with the lognormal but failed b/c as soon as you add risk-free-rate and/or dividends then it doesn't work with lognormal... So, I'm convinced this method is the correct method."

You can't use the normaldist function for put computations because stock prices can't go negative.

VolSkewTrader · Aug 20, 2020

The normaldist put computations only work if stock prices can go negative.

thecoder · Aug 20, 2020

Dear folks, please ignore the crap argumentations of this @VolSkewTrader idiot! He is talking nothing but Bullshit!

thecoder · Aug 20, 2020

thecoder said:
ATTN: another variant of FairPut will fix the classic PUT ! Still working on it.

I hereby proudly announce that I now have been able to fix also the flawed payout of the normal PUT option!
More info soon...

thecoder · Aug 20, 2020

VolSkewTrader said:
The normaldist put computations only work if stock prices can go negative.

JUST SHUT UP! YOU ARE TALKING OF DIFFERENT THINGS.
You are still stuck in the basics, you idiot!

VolSkewTrader · Aug 20, 2020

thecoder said:
Dear folks, please ignore the crap argumentations of this @VolSkewTrader idiot! He is talking nothing but Bullshit!

You are by far the biggest retard I've run into on ET...and that's an understatement.

thecoder · Aug 20, 2020

VolSkewTrader said:
You are by far the biggest retard I've run into on ET...and that's an understatement.

Just piss off from this thread! You stink!

VolSkewTrader · Aug 20, 2020

You shouldn't be promoting and recommending to unsuspecting traders to use a deeply flawed model that would lose them a lot of money. I'm going to ask Baron to remove you from this forum permanenty.

You also need to be careful about uploading incorrect reinterpretations of the BSM on GitHub. Your flawed pricing model is both misleading and theoretically incorrect.

It's really something you should be ashamed of...definitely not something to be proud of or be bragging about.

thecoder · Aug 20, 2020

thecoder said:
ATTN: another variant of FairPut will fix the classic PUT ! Still working on it.

thecoder said:
I hereby proudly announce that I now have been able to fix also the flawed payout of the normal PUT option!
More info soon...

Ok, here's it:
A NEW PAYOUT METHOD FOR CLASSIC PUT (a long due fix since 1973 ):

Code:

BSM:
S=100.00 K=90.00 s=30% t=1.0 r=0.0 q=0.0 :
CALL: Value=17.012880 Delta=0.691885  FairDelta=0.637281  Gamma=0.011728 Vega=0.351854 Theta=-0.014460 Rho=0.521757  ...
PUT : Value=7.012880  Delta=-0.308115 FairDelta=-0.362719 Gamma=0.011728 Vega=0.351854 Theta=-0.014460 Rho=-0.378243 ...

If PUT option expires at spot 80 (z=-0.392610 from K; the corrosponding spot at the other side (ie. +z) is 101.25) :
Old/current/flawed/unfair payout: 10.000000 Profit=2.987120(42.59%)
The fair payout has to be:        11.250000 Profit=4.237120(60.42%)

thecoder · Aug 20, 2020

VolSkewTrader said:
You shouldn't be promoting and recommending to unsuspecting traders to use a deeply flawed model that would lose them a lot of money. I'm going to ask Baron to remove you from this forum permanenty.

You also need to be careful about uploading incorrect reinterpretations of the BSM on GitHub. Your flawed pricing model is both misleading and theoretically incorrect.

It's really something you should be ashamed of...definitely not something to be proud of or be bragging about.

You full-idiot! This is a new research that your little brain is not capable to grasp!