Read first and the last and assumed everything else is somewhere in between. #1: ++ #4: rofl. No offence man, he's good.
see if you were really a CFA chartholder like you claimed earlier, you wouldn't be so obsessed with your CFA jokes god, what a little fraud you make, how are your $GME holdings btw, still winning?
it's on the Journal of Portfolio Management, need to dig through my archives Will find it, just so you can shut up and apologize
And this is why I always have black swan insurance on my short SPY options trades. Just in case some crazy shit happens.
You missed my point completely as your answer is completely irrelevant to what I (or the OP) am saying. I was saying that OP's reasoning is incorrect because the log of the price can perfectly be negative and the model is applied to the log, so nothing wrong with that. It is not true that the model predicts a positive probability of a negative price.
When you see implied vols this high you just NOT its time to sell short straddles. You can even sell deep in the money ones very profitably, and have a TON of protection no matter which way it breaks...