So, I think I just created some stock option ALPHA for you guys...

SoyUnGanador · Oct 22, 2022

BlueWaterSailor said:
I need to set up a deepfakes generator just so I can do a version of me with dreads and gold caps, wearing a knit beanie and smoking a rank-ass cigarette.

"Muhfukkas be out here reinvent'n shit..."

Hahaha!

SunTrader · Oct 22, 2022

SoyUnGanador said:
Haha you would be very wrong. I didn't specify calls or puts because it could be EITHER!

And that is exactly why you should have specified which.

destriero · Oct 22, 2022

SoyUnGanador said:
Option prices on individual stocks are going to be higher vis-a-vis- indexes because individual stocks are more volatile than the indexes, obviously.

So. Buy 10 QQQ options. Sell 10 options, one on each of the biggest QQQ stocks. (I'm saying 10 but it might be 7, it might be 12, you get the idea I'm sure.)

You will come out ahead given premiums on individual stocks will be much greater than premiums you paid on QQQs, and any risk of loss is pretty darned small given that 10 stocks is plenty sufficiently diversified.

YOU ARE WELCOME ET!!!!

Dispersion! Whoa. Mind blown.

Can you fucking STOP starting threads in which you expertise is that of a newborn?

newwurldmn · Oct 22, 2022

destriero said:
Dispersion! Whoa. Mind blown.

Can you fucking STOP starting threads in which you expertise is that of a newborn?

i thought about ignoring him but his pollution is everywhere: like needles on the Jersey shore. The only solution is to go to the hamptons.

SoyUnGanador · Oct 22, 2022

LOL, you guys kill me.

But I'm right, right?

newwurldmn · Oct 22, 2022

SoyUnGanador said:
LOL, you guys kill me.

But I'm right, right?

You’re wrong, Wrong?

FreeGoldRush · Oct 22, 2022

You state a hypothesis as if it's a theory you have experience with. My child often did that too.

SoyUnGanador · Oct 22, 2022

How am I wrong guys? Seems pretty legit to me...

mervyn · Oct 22, 2022

SoyUnGanador said:
How am I wrong guys? Seems pretty legit to me...

First, you need lot of firepower to pull this off, and a good wind on your back. Second, by sell puts, essentially you are capped at certain cash flow returns. Option is a depreciating asset, all the greeks are not there for nothing. Either you are net long or you are net short, can’t have both ways.

SoyUnGanador · Oct 22, 2022

Thanks mervyn, but I'm not quite following. If one sells call options on call it $100,000 of notional value of 10 of the biggest QQQ high tech stocks, with a strike price as close to the trading price as possible, and one then purchases call options on $100,000 of notional value of the QQQs, again with the strike price as close to the trading price as possible, it would seem to me, while one will not be PERFECTLY neutral, they should be pretty darned close!