Perpetual Options

I am sorry. That was meant for another guy who posted before you. He keeps following me from thread to thread because I was ignoring him. I responded to IV_Trader (who I find an excellent contributor), and followed with that sharp note to the other guy, which somehow appeared after your note.

Again sorry if you are hurt in your feeling. Do you want me to ask the admin to remove that note or edit it? I just tried to edit it or remove it but I could not, as it is past 30 minutes.

I will try to PM you as well.
 
Quote from optioncoach:

FUnny how their last press releases are from 2005. Wonder what they have done since then.
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When you have an expirationless option you can just sit back and relax for a couple of years!:D
 
Their web is still exist ,

The logo X seems like X-box logo from microsoft :p ,

however didn;t find any news since 2005

maybe they still hold some contract for being act as a market maker and dunno how to close the transaction because its expireless
 
Quote from anugrahtex:

...The logo X seems like X-box logo from microsoft :p .../B]
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That's the platform they are using to trade them.:D
 
Quote from H*Pi:

A raw pricing algorithm would entail pricing a 100-year American call from BSM. Or solve for delta using BSM of blended duration and multiply by price of underlying. This was the standard, best practice in the OTC World, at least until 1999. "Russian" perpetual lookback option are common among banks.
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Brilliant my friend.
 
Is that right? Dictionary definition of perpetual is: "Unending, continuing forever, having no expiration date". I am fine that you price it as a 100 year as long as I am not the seller. I just want my option to be perpertual. Counterparty risk should not exit (it has to be done via the options clearing corporation).

You know what: I will buy such perpetual calls priced with the 100-year model anytime. And will come back very often to buy till you refuse my business. Post a price quote on, for instance a quote on SPY.

If the answer becomes 100 year is enough for one's purpose, then the question of pricing the perpetual option remains open!
 
Quote from riskfreetrading:

Is that right? Dictionary definition of perpetual is: "Unending, continuing forever, having no expiration date". I am fine that you price it as a 100 year as long as I am not the seller. I just want my option to be perpertual. Counterparty risk should not exit (it has to be done via the options clearing corporation).

You know what: I will buy such perpetual calls priced with the 100-year model anytime. And will come back very often to buy till you refuse my business. Post a price quote on, for instance a quote on SPY.

If the answer becomes 100 year is enough for one's purpose, then the question of pricing the perpetual option remains open!
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You truly are out of your depth. Here you go. I will write you a SPY 160 strike perpetual call at 65.00 at 27% vola. I'm running a special for today only! I'll sell you a 120-year 160 euro call at 62.00! PM for wire details on your haircut. What you don't know about replication would fill the Library of Congress.
 
Riskfreetrading: What is the greatest risk to a perpetual index call under 1 sigma on spot-price over one year's time?

When should a trader choose a covered call over a same-strike short put? Finite duration, assuming p/c parity and no discount arbitrage. Google searches won't help; so please just take another stab. You got it wrong on the first try.
 
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