What I have to think about is weather you can have $100M of liquidity on options while $10M are enough to seriously affect the price of the...
ajackobson++ The option value at expiration is settled against the price of the underlying equity. If manipulation occurs on the equity, so be...
Currently options on US equities have physical delivery. Wonder if any of you would be (more) interested in trading them if they were cash...
To have an edge, do an abscission of volatility's callose while taking into consideration the market inefficiency of accounting for the...
These posts remind me of a movie about a cretin illiterate gardner who somehow gets to be in the entourage of the vicepresident of the United...
>> Go trade your own capital and come back in 2026. I'll never in any circumstance hire a guy like you and if you'd have read my post carefully...
prc117f, could you be less of an asshole, please?
@d08: May I ask how much did the fund have as assets under management? I worked for one that had about $1B AUM, but the options market making desk...
@d8: trusting people is hard, especially on the internet. I'd much rather prefer to find some local guys to work with but unfortunately I haven't...
>> Yea.... we noticed. He heh :D
I think competitive advantages and protecting them from being stolen are real issues in this industry. Because if you get to the point of making...
Do you backtest before going live with a (new) strategy? Do you use some own-written or commercial software to scan for opportunities according...
I still think you don't understand what I'm proposing, but that's also my problem for not explaining it right. I'll refine the idea and put in in...
>> Tibster: Why not build a synthetic short and add some OTM call and puts to cap it? Because I want to buy or sell those options myself :) >>...
Also I need counterparts for my OTC options or there wouldn't be a ground for me to trade those OTC futures (which I use for hedging those options).
>> As long as you're happy with the idea that the prices of the "capped/floored" futures contracts could be different to the vanilla, I am happy...
And if you have capped CFDs, using those as the arbitrage instrument instead of the real stock, then you can also price futures, for which the...
That's why I'm not bothering with futures and just using CFDs. You don't need to price those, they are already priced by the market, at the spot...
That's because regular assumptions about arbitraging a future do no longer hold for capped ones. Let's take the case where interest rate is zero...
I'd have to think about it. By default I'd say that if the interest rate and dividend yield of the underlier is zero, then the risk-free fair...
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