Inflation bet

Discussion in 'Trading' started by qlai, Nov 25, 2021.

  1. qlai

    qlai

    What is “fair put strategy?” You meant Fed Put strategy?
     
    #11     Nov 25, 2021
  2. thecoder

    thecoder

    He means an options model I've developed as a slight fix & substitute to the standard Black-Scholes-Merton (BSM) model. I had named it "FairPut", b/c it fixes especially the Put side by making it a mirror image of the Call side (which is not the case in the standard BSM).
    Of course he badmouths it, b/c he does not believe it's better than BSM, nor understands the field.
     
    Last edited: Nov 25, 2021
    #12     Nov 25, 2021
  3. traider

    traider

    I am full of admiration for the fair put. The only tough choice you have to make now is whether to use it to harvest trillions from the market or get a nobel prize.
     
    #13     Nov 25, 2021
  4. MrMuppet

    MrMuppet

    errrr....guys, he's talking about long puts on treasuries which is a short notional. Rates up->treasuries down.

    We're not talking about shorting puts here XD
     
    #14     Nov 25, 2021
  5. Bill Ackman is right. Inflation isn't temporary. A good example, the wage is impossible to lower it after increasing it. I live in Argentina, and I have a master's degree on how to live in inflation
     
    #15     Nov 25, 2021
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  6. qlai

    qlai

    But why would he call it credit swap?
     
    #16     Nov 25, 2021
  7. qlai

    qlai

    It would be interesting to hear from you, since I am in US for 30 years and I haven’t experienced runaway inflation. How does one cope with that on a personal level, not portfolio management.
     
    #17     Nov 25, 2021
  8. MrMuppet

    MrMuppet

    A long position in CDS is also a long rate/short bond position. However I think he means deal structure aka pay monthly prem vs. forking it out at once upfront
     
    #18     Nov 25, 2021
  9. easymon1

    easymon1

    Please Start a Thread on this.
     
    #19     Nov 25, 2021
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  10. #20     Nov 26, 2021
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