Options : zero sum game

Why would you tell me that when I am not close to a TV?!?!?!!?!?

I almost grabbed that issue but then I saw that it was just a cover shot and she was not in the magazine lol. I told her last night to just get payment for use of the pic and let it go since it is good publicity ;)

Quote from IV_Trader:

OC , Alba on FOX news next (about Playboy pictures)
More...
 
Quote from Profitaker:
True, but how does that alter the zero sum fact ?
More...
Delta-hedging is a wierd thing. For example, in a range-bound market, both long and short gamma positions can make money. How's that for zero sum game? :D
 
Quote from sle:
Delta-hedging is a wierd thing. For example, in a range-bound market, both long and short gamma positions can make money.
More...
Agreed, by hedging delta with the underlying, in which case the final P & L is path dependant.

Quote from sle:
How's that for zero sum game? :D
More...
Isn't it still zero some, as in the net wealth of all the DN trading (gamma scalping) participants won't change - it merely gets re-distributed ?
 
Quote from optioncoach:

This is always a funny argument because if I make 30% in a year, I really do not care who lost it to get it to me.

Isn't that all that matters, that you make money?

:D
More...


I have seen few times comparison to insurance, and have to say I like it.

Options are financial insurances, aren`t they ? Then someone pays to insure his portfolio and seller must know how to run the business to not go down if he is obliged to pay compensation.
 
Quote from ChrisM:

I have seen few times comparison to insurance, and have to say I like it.

Options are financial insurances, aren`t they ? Then someone pays to insure his portfolio and seller must know how to run the business to not go down if he is obliged to pay compensation.
More...

Very well said ChrisM
 
options are zero sum

period

within the options universe, the net position is necessarily zero

it's a matter of math

one can make great money in options, and they can be used to speculate, hedge, or provide income

but they are zero sum

the system is closed, and each position has a corresponding postion that cancels it out

thus, neutral. thus - zero sum

stocks of course are not zero sum
 
Quote from whitster:

options are zero sum

period

within the options universe, the net position is necessarily zero

it's a matter of math

one can make great money in options, and they can be used to speculate, hedge, or provide income

but they are zero sum

the system is closed, and each position has a corresponding postion that cancels it out

thus, neutral. thus - zero sum

yes , but are they(options) really zero sum ?
I could not understand it from your post.
TIA

stocks of course are not zero sum
More...
 
Quote from novel20:

Wait a sec, is option a zero sum game?

Can anyone please explain? :D
More...

the latest verdict : options are , but stocks are not.
Will check again later.
 
You must log in or register to reply here.
Back
Top