Option Question about Delta

Quote from bwolinsky:

Since there is no European option you have an example of this for, I don't feel like answering.
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Sle: Europeans would at least use a cappuccino option instead of a vanilla flavored one. What a clever trap you set.

Strange, when some individuals post and I don't understand things they say, then I assume it is my own ignorance and there is something more for me to learn. Some people however seem to think that it is the other person and there is more for those ones to learn.
 
Quote from bwolinsky:

..... I can't stand non-linearity because it is a method of CBOE manipulation. .....
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I believed that (when I was a beginner in trading), the CBOE could directly manipulate the markets, however these days the trading done by them is so tiny compared to the other participants, that I doubt they can do much directly. This kind of interference is done with "Surprise!" margin changes, announcements etc. and many other indirect methods.

On one small cap stock during the flash crash - my order set the precise bottom with an incredible small amount of shares that I bought and stopped the drop in that one share. By the end of the day, I was up a lot and sold it according to my rules because I didn't understand what happened.

It was absolutely pure luck that I happened to have a GTC open well below the market as I wanted to watch that stock closely.

As I think through this "trade", it occurs to me that there couldn't be manipulation. The manipulators could have easily placed their orders one penny above mine and not fill me, but they instead piled on top of my order. Those ones were not manipulating.
 
Quote from Martinghoul:

I wonder if there have been cases of the CFA institute publicly disowning one of their own (for reasons of that person being a total muppet)?
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Why do you always insinuate I'm ignorant?

Do you have Level I of the CFA Exam passed? No?

You have not contributed anything to threads I've participated with you in, and if you want to keep criticizing I can have you on ignore if you think I like always having to defend myself against your snide comments.
 
Quote from StarDust9182:

I believed that (when I was a beginner in trading), the CBOE could directly manipulate the markets, however these days the trading done by them is so tiny compared to the other participants, that I doubt they can do much directly. This kind of interference is done with "Surprise!" margin changes, announcements etc. and many other indirect methods.

On one small cap stock during the flash crash - my order set the precise bottom with an incredible small amount of shares that I bought and stopped the drop in that one share. By the end of the day, I was up a lot and sold it according to my rules because I didn't understand what happened.

It was absolutely pure luck that I happened to have a GTC open well below the market as I wanted to watch that stock closely.

As I think through this "trade", it occurs to me that there couldn't be manipulation. The manipulators could have easily placed their orders one penny above mine and not fill me, but they instead piled on top of my order. Those ones were not manipulating.
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Knowing failed pit options traders once removed I think you underestimate their pricing power.

May 6th was a freak event caused by a Waddel and Reed 75,000 contract big SP dump. That you got filled on your order that day was pure panic fear, and the especially fast rise once the confirmation was out that there wasn't any nuclear war is pure coincidence.

I like hearing Venture Capitalists talk about making money way more than fund managers. They are devouring the meat, and leaving you the biscuit.
 
Quote from bwolinsky:
Why do you always insinuate I'm ignorant?
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Hmm, is this a trick question? Let me respond with all due seriousness, though. It's because you are, in fact, ignorant. That wouldn't be a problem for me at all, if you didn't combine appalling ignorance with totally unwarranted arrogance.
Do you have Level I of the CFA Exam passed? No?
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No, I don't, because it would be a waste of my time. If you were a trader, you would easily understand why. Moreover, my judgement is also based upon first-hand experience with the CFA curriculum (my wife passed her Level III recently).
You have not contributed anything to threads I've participated with you in, and if you want to keep criticizing I can have you on ignore if you think I like always having to defend myself against your snide comments.
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You're sorely mistaken. If you look at the content of a given thread before you start polluting it with your inane ramblings, you will realise that I happily contribute. It's only when you start spouting nonsense that I start having to resort to (sometimes gallows) humor. Frankly, it's the only way I can keep hold of my sanity after reading your posts. If you feel like you want to put me on ignore, so that you don't have to defend yourself, pls be my guest, knock yourself out, etc etc.
 
Quote from Martinghoul:

Hmm, is this a trick question? Let me respond with all due seriousness, though. It's because you are, in fact, ignorant. That wouldn't be a problem for me at all, if you didn't combine appalling ignorance with totally unwarranted arrogance.

No, I don't, because it would be a waste of my time. If you were a trader, you would easily understand why. Moreover, my judgement is also based upon first-hand experience with the CFA curriculum (my wife passed her Level III recently).

You're sorely mistaken. If you look at the content of a given thread before you start polluting it with your inane ramblings, you will realise that I happily contribute. It's only when you start spouting nonsense that I start having to resort to (sometimes gallows) humor. Frankly, it's the only way I can keep hold of my sanity after reading your posts. If you feel like you want to put me on ignore, so that you don't have to defend yourself, pls be my guest, knock yourself out, etc etc.
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So we're clear. I won't ever to speak to you again.

You have been a complete waste of my time protracting many of my conversations with others.

I am an RIA Rep, and a CTA, and I own the IA/CTA and a stock exchange, and that will be more than you or your wife will ever be able to say about either of your careers.
 
Quote from bwolinsky:
So we're clear. I won't ever to speak to you again.
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How about you do us all a favor and do not talk to ANY of us, at least in the options subsection? It would save a lot of your valuable time and spare myself and the others the embarrassment of being measured against your CFA knowledge base and your MENSA-worthy intellect.
 
Quote from sle:

How about you do us all a favor and do not talk to ANY of us, at least in the options subsection? It would save a lot of your valuable time and spare myself and the others the embarrassment of being measured against your CFA knowledge base and your MENSA-worthy intellect.
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I haven't said anything that's not true to form.

The OP's question particularly is what attracted me to this thread.

Delta is not a probability, nor should it be used as such.

It is, for the final time, the dollar change the option will move for a $1 or 1 unit change in the underlying. If you want that 1 unit change to be a $1, a dime or 1 percent, you will be able to predict to within a nickel what the change in the option will be.
 
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