Trading, Taking and Income, and Capital Requirements

raVar said:
But, at that AUM, they are.

I know of a case, of an individual who is probably one of the single greatest options Traders on this planet. And that's not an exaggeration. And Incredibly talented software writer who is responsible for coding systems that are used Tier 1 institutions. Nothing that retail Trader would ever hear of because quite frankly, it's just working at a level that's too far above them.

Back when Goldman Sachs could look at trading strategies and prop, before befour Volcker ... and back in that day. Amd even he cannot scale up past 25 million.
More...
325 million in todays world is really not that big. They are in the small-medium sized firm.
IIRC Vic Neiderhoffer was managing a few hundred million dollars and had a similar PnL graph until...

They are 325 million making 12% a year. So if we do the math, last year they were about $285 million and made ~$50 million dollars. You would only need to be selling about $4 million in premium a month. The 2950 Nov SPX strike alone did about $2million yesterday. For a guy who understands bayesian data splines, I would think for sure you'd at least question the possibility of Global Sigma selling DOTMP

In regards to the on thread topic, we all know that a newbie is not going to make a living trading. The off thread topic imo is more interresting
 
TheBigShort said:
325 million in todays world is really not that big. They are in the small-medium sized firm.
IIRC Vic Neiderhoffer was managing a few hundred million dollars and had a similar PnL graph until...

They are 325 million making 12% a year. So if we do the math, last year they were about $285 million and made ~$50 million dollars. You would only need to be selling about $4 million in premium a month. The 2950 Nov SPX strike alone did about $2million yesterday. For a guy who understands bayesian data splines, I would think for sure you'd at least question the possibility of Global Sigma selling DOTMP
More...

But that is not what I said mate. They are an alternative. For an alternative, yes 325 million makes them one of the largest in the world. There might be five? Maybe more? Straight Alts .... Off the top of my head ... Alternatives ... that top 2 Billion
 
Last edited:
TheBigShort said:
325 million in todays world is really not that big. They are in the small-medium sized firm.
IIRC Vic Neiderhoffer was managing a few hundred million dollars and had a similar PnL graph until...

They are 325 million making 12% a year. So if we do the math, last year they were about $285 million and made ~$50 million dollars. You would only need to be selling about $4 million in premium a month. The 2950 Nov SPX strike alone did about $2million yesterday. For a guy who understands bayesian data splines, I would think for sure you'd at least question the possibility of Global Sigma selling DOTMP
More...

The entire strike. Take another look at that math. Then try to work the scalability issue of working that strike alone at that size for THAT TIME CONSTRAINT to fit in the monthly grid. If they protect their gamma? They've instantly scaled out. And since they are a straight alternative, they are not allowed to leave the alternative space. I've never worked inventoring strikes ... But even if that was the case the NFA would make them report that. I'm not sure if you have ever worked any scalability issues, but I should hope that should be self-evident, when you consider their maximum DD numbers over the event series. That's what tells the story. The event series. The only other alternative, is not protecting against Gamma explosions. Is anyone so stupid at this point, to go the Optionsellers route? Be the second one up to the plate. Been a while, but you can read their program description. It is not what they're doing. I have a suspicion of what they're doing, but would prefer not to say, as it's something that we would like to start doing in the next 4 months ourselves as it is a rather unique solution to the above problem
 
Last edited:
My math may be wrong but I see 2604 contracts at 7.00.

Here is what I did. Brace yourself. 7 * 2604 * 100 = $1,822,800.

Also I just read their strategy! It looks like they are selling premium!
Screen Shot 2019-10-30 at 1.44.45 AM.png
 
Well, my bad. I did have them confused I think. Possibly with Blue Sigma. You see enough of those names, and they all start to blur.

Looks like they are selling premium. I was wrong. Still don't see how they are doing it at that AUM. Unless they've gone the OptionSellers route; and aren't protecting on the Gamma side. Which means, inevitably ... unless they are working and non-correlated long against their Premium to protect themselves, and they truly did go the OptionSellers route ... they are exposed to gamma explosions. Which means their day will come. It's just math. It has to happen eventually.

But as previously stated, if you ARE going to protect against a Gamma explosion, you have to deploy the capital to do that, which inherently means you are hit on a scaleability issue; which I stated previously.

Coulda sworn I read their statement. But then again, like I said, that could have been "Blue Sigma"?

Which means I would never invest with them. Regardless. It's all besides the point. They probably raised how many million has being a straight Alt? Even selling premium. There is something to be said for just the straight guts that takes.

Unless, as stated, they are in a structured deal, where that Program is registered, but it's in a deal where they are simultaneously structured with a long Gamma product; and it's single product registration for raising a Flag, for marketing purposes.
 
Last edited:
TheBigShort said:
In all fairness, at first glance I thought they were using some type of bayesian data splines.
More...

No malice.

But if you're going to be an ass, I'll just block you as well.

No ill will. I've tried to be polite, and cordial. No outbursts (and yes, I saw the comment on "Didn't that guy slam Taleb for being so sensitive?"). More than willing to admit where I mess something up, and mis-state a fact. In fact, I think I may have been thinking of Blue Sigma. Of course, Blue Sigma may themselves be one of the twenty thousand dead and liquidated CTA's in Barclay Hedge, because ones try to be firms that deny simple math. Honestly? I don't care if they are or not.

But in the end? I just don't care.

Make no mistake. It's not sensitivity. Taleb will have an outburst, and "F THIS AND F THAT AND F YOU YOU STUPID" "You're F'ing misquoting me you stupid F!!"

I won't go there. Because in all honesty?

I just don't care. That's anger, which Taleb seems to have in abundance. Anger takes energy. I'm more apathetic. I just don't care about you. And I just don't have any energy to care about douchebags. Is anyone going to care about them? Why should I? It's sorta like getting upset at a dog barking in the background. Why take the energy to care about it? Just shoot the damn thing and be done with it.

Spelling mistakes are from the fact I'm laying on my couch in my office, and just raising enough effort to text-to-speech. Screw typing it all out. And there are times why I'm wondering why I'm spending any time on that at all. Some of the new folks seem to learn a thing or two.

And this is all besides the point?

That again, it is 8 posts, about a side hi-jack, that has nothing to do with the original post, and is obsessing over a side comment I made. Which in a way? I'm sort of thankful for ... because it teaches me that yeah ... Global Sigma's day will come as well. Just a matter of math. So I needn't watch them any longer.

I mean ... think about that honestly. For just a moment.

Some jackass, has to OBSESS over a side comment and observation about, that has nothing to do with the point at hand ... that in the end, I don't care about anyway ... and may have been over a mistaken view I had? I mean ... what sort of loser is that? How pathetic do you have to be, to make that your aim?

Regardless, literally taking a side observation of mine, away from the main point, not addressing ANY of the objections I made (Name me 20 Alternative Firms over 5 Billion. Or even 5). Nah, can't respond to that. Just have to keep harping on a stupid side point and side observation; which in the end, I could care less about anyway.

It's no wonder the public at large is in the state it's in. I mean ... lord ... Look at yourself. LOL. Can't even object on a factual point to High School mathematics on probability and statistics. You just have to make asinine comments about it; because obviously your education didn't include Bayesian Decision Probabilities (yikes).

Usually born of people that haven't done much, and they have to try to attack something, so they attack an "i" that isn't dotted. So they take a side observation, and turn it into a crusade. Like I said ... look at the public at large.

I believe in the fractal nature of the universe.

Fractured and splintering societies are made of fractured and splintered individuals.
 
Last edited:
No screw it, I'll block him too. It'd take too much energy to care, and would sidetrack from the original post of the post.
 
Dude settle down and lay off the drugs.
raVar said:
I have been observing Global Sigma Group for years.
More...
You did not get it mixed up. It seems like I can't quote you since you blocked me. But you did mention you followed the company for years LOL.

The only reason why I am being a bit over the top here is because:
1) A few days ago you blew off the guy who was your only hope in ever being profitable. This really tells a lot about your character and your willingness to learn.
2) You are in the options forum usually.

I have no clue what you are talking about regarding Taleb.

You might have to come back under a new handle because after these last few (edited) posts. You are not looking very creditable or worthy of listening to.
 
You must log in or register to reply here.
Back
Top