How to better understand options?

Discussion in 'Options' started by nursebee, Dec 18, 2024.

  1. newwurldmn

    newwurldmn

    your opinion is useless. You didn’t provide your CV as proof that you should be listened to.
     
    #11     Dec 18, 2024
  2. taowave

    taowave

    Lol!!!!!!



     
    #12     Dec 18, 2024
    Slow Learning Elf likes this.
  3. ironchef

    ironchef

    Don't take me too seriously, I am just an amateur retail.

    That statement came from @Maverick74 who lectured us in 2014 when I first joined ET and I took it to heart.

    Perhaps he can answer your paradox.
     
    #13     Dec 18, 2024
  4. poopy

    poopy

    MMers mandate is to to be flat, virtually instantaneously with the only caveats being an independent guy with a biased solo-book or an upstairs book runner who hedges globally. They can afford to give up edge on the hedge because they are buying the bid and shorting the offer. They LOLN over thousands of individual trades and earn from filling instantly at edge and working the hedge with the urgency dictated by their gamma-pos.

    The OI resulting from this trade is zero sum but both counterparties may gain from getting flat at -edge vs an existing edge or profitable mark elsewhere.

    Buyer sells stock to close at 50.50 bid with a 50.60 ask. He's only out a nickel and perhaps his cost-basis was 35.

    You can bid 0.4 for a call with the market 40x50 and fill as price trades through you. You get the fill report and market reverses in your favor. Zero sum is arbitrary and doesn't represent reality.

    You're conflating zero-sum with overall profitability. Greater fool theory alone abrogates zero sum wrt profitability.
     
    #14     Dec 19, 2024
    Flynrider and ironchef like this.
  5. poopy

    poopy

    We won't. Is there any thread that you don't feel the need to address?
     
    #15     Dec 19, 2024
    ironchef likes this.
  6. ironchef

    ironchef

    No.

    Free speech, even for us ignorant amateurs.

    I post to get feedback so I may learn something.
     
    #16     Dec 20, 2024
  7. ironchef

    ironchef

    :thumbsup:

    Thank you for taking the time to explain and clarify for me.

    Good to know.
     
    #17     Dec 20, 2024
  8. ironchef

    ironchef

    Like this, your post:

    Thank you. Have a great day. :D
     
    #18     Dec 20, 2024
  9. My CV includes a stint as a McDonalds clown. I can speak with authority on pretty much any subject.
     
    #19     Dec 21, 2024
    taowave and themickey like this.
  10. newwurldmn

    newwurldmn

    well I stayed at a holiday inn express.
     
    #20     Dec 21, 2024
    nbbo and taowave like this.