Still curious to what trade was the biggest loser in the 87 crash...
Cant see how it wasnt short puts
Cant see how it wasnt short puts
The #1 Skill In Selling Options
- Thread starter OneGlanceTrader
- Start date
if it wasn't short puts before the crash. i think it was long puts after the crash.
Everybody agreed with the Pope that the Jesuits that the sun revolved around the earth. Does that mean they were correct? And besides there are only really 2 people, @taowave and @destriero here who agree with you. The rest are just joining in the "debate" for fun. That's hardly everybody. And I am the one with the ego? LOL
Glad you at least admit that you are a troll though.
EXACTLY!! It was the short puts, pushed by the ballooning infinite gamma that never really reached 0 when delta reached 100 (or 1) like what @destriero tried to illustrate. And guess who pushed gamma to infinite on that day? The put shorters' tremendous losses on that Black Monday was the prime example of how gamma could be manipulated by the dealers who took the other side of the transaction who refused to sell their puts no matter how much the put shorters bidded to buy back their puts.
Thank you for proving my point with this empirical evidence and that theory doesn't really matter. It's the reality that counts.
lol so you're telling me that the'87 Crash -99D puts lost money due to gamma position? So it's ballooning but doesn't reach zero? Tell us more, Dr Science! Infinite gamma!
Bull RR would have fared better than any ATM naked short.
do you think that market makers at each firm have a fucking turntable style setup with all the greeks listed on it? that they're sitting their manipulating when your order comes through?
MM Bro #1: "yo, get a load of this phat premium I yeeted from TheDawn."
MM Bro #2: "nah fam, crank up da gamma!"
MM Bro #1: "yo, get a load of this phat premium I yeeted from TheDawn."
MM Bro #2: "nah fam, crank up da gamma!"
Ballooning infinite gamma??? LOL!!!!!!!!!!!!!!!
And all along I thought that Delta and Vol hyperspacing between 200 and 300 was the source of pain...
No doubt,the markets were verrrrrrry wide,but you try hedging with futures in an enviorment like that..
And FWIW,we did fill the market orders that were coming into the pit...
And all along I thought that Delta and Vol hyperspacing between 200 and 300 was the source of pain...
No doubt,the markets were verrrrrrry wide,but you try hedging with futures in an enviorment like that..
And FWIW,we did fill the market orders that were coming into the pit...