that's because there are no successful prop traders out there smart enough to pull something like this off. you're all a bunch of arrogant pricks thinking you're smarter than the collective mind of the market. in theory you put the top 300 pirates together and you'd have order, not chaos in the markets because they would set the tone, not some sleazy bank ceo lying his ass off to congress to protect his golden parachute. and not retail. this is real money, leveraged the same as any hedge fund, leveraged the same as pnc is backing blackrock, same leverage goldman sachs is getting to jack it's stock price up to cover its partners' margin calls. find 300 guys with two decades under their belts and the battle scars to prove it, arm them with enough capital to swing the market in whatever direction they wanted, define the rules of engagement without being in violation of sec rules, and then you'd have a game. in practice, however, you'd have 300 egomaniacs running around arguing they were right and everyone else was wrong, thus proving no one knows what the hell they're doing. maybe someone should form a group of spartans (it was a metaphor, stupid) and take down the billionaires (warren buffett leaps to mind) and the greed monger SACs of the world so we can stack them like cordwood on the front lawn of the white house as a trophy for the millions of good, honest, hardworking people all over the world whose lives have been destroyed by wall street greed. i was just wondering if anyone else out there actually believed the little guy could defeat goliath. apparently not. god bless america. rb.
1. the top guys would accept and hedge the combined delta risk of our collective positions because there would be no dissention as to what the position of the firm would be. 2. clueless, huh. how do you hedge your intraday risk? 3. twitter has spread faster than any virus invented for the internet so far. within a year it will be moving markets like schools of fish depending on whose tweeting. some of the ideas are bait for fools, and you bit. others are just innovation inspired by greed inspired by necessity. but then you're probably not up 980% ytd on your account like i am.
If one was crazy enough to give you leverage. <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=2428351">
fyi, you can't trade options on margin. i don't need it. i can back myself without risk of margin calls. so if that makes me a retail trader, then i'm a retail trader. i'd never signing a margin agreement with any american bank or any outfit like assent where the head office is run by teamsters. any fool who would sign the margin agreement that assent gives it's traders is a lemming ripe for the kill. no wonder this industry is reviled by the majority of american society. instead of posting stupid photos write something that proves you're capable of analytical thought and constructive criticism. otherwise, sod off, ivan. the markets as they exist today are fundamentally corrupt and will stay like that until the rules are changed so everyone can play on the same field. someone needs to lead the charge to take down goldman sachs. may as well be me.
1) You're mentally-ill if you think anyone would buy into this structure. You employ a risk-manager who hedges to a defined-risk standard. 2) You can't hedge to a partial defined-risk or any other delta-hedge on an intraday basis. I would assume you're referring to hedging overnight positions via a partial synthetic call or put; better, but still dumb. On one had you're talking going home flat; on the other you're talking about hedging... you're going to buy insurance for an intraday position? Or replicate with synthetic puts or calls to carry stuff overnight? You think your (sic) top producers are going to pay for insurance for the collective? 3) You would be shut-down in a week if you began to tout your book on Twitter. I can't fathom the brain-pan that would consider this a good idea. You would have zero-impact on price; worse, it's illegal as you would be operating as a B-D. It's obvious that you're out of your depth and/or haven't given this a lot of thought.
Uhh, yeah you can. A JBO-haircut requires a nominal vega-exposure based upon a couple deviations in risk and some decay. Regardless, you're replicating a call or put, and I'd guess that's not what you really want to do.