Martin Schwartz talks about losing $25m Feb 2018

Discussion in 'Wall St. News' started by ZBZB, Jan 1, 2020.

  1. destriero

    destriero


    Right, it's what they all say when they blowup. A recent style drift.
     
    #11     Jan 1, 2020
  2. SteveM

    SteveM

    From what I have gathered from following him over the years, his trading career transitioned from trading gold options, to trading index futures in the pit once they launched in the early 80s (which were his bread and butter for many years), to then transitioning into trading crude oil options, and finally to index options in recent years.

    In his last interview in 2013 (before this one) he repeatedly said "the game has changed" and algorithmic trading makes trading S&P 500 futures outright much more difficult than it used to be...he also said he made a bundle in options because he was able to "roll his position down if it went against me, due to the size of my bankroll."

    I honestly don't believe he's a fraud at all. In this most recent interview linked above, he talks pretty candidly about some massive losses he has taken in recent years, so it doesn't look like he is trying to bullshit people with tales of non-stop success.
     
    #12     Jan 1, 2020
  3. destriero

    destriero

    Losing $25MM shorting puts on SPX but he’s honest about the circumstances?
     
    #13     Jan 1, 2020
  4. ZBZB

    ZBZB

    is this on YouTube?
     
    #14     Jan 1, 2020
  5. SteveM

    SteveM

     
    #15     Jan 1, 2020
  6. destriero

    destriero

    He should start a fund with Karen. TBH picking a delta figure isn’t going to matter. Either you’re a trader or you’re systematically underwriting disaster insurance. He seems to be the latter. He is obviously persistently short naked (hence Feb).

    My buddy lost $7MM short naked calls in TSLA and left a debit with the BD. He’s an idiot. No excuse.

    Marty shorts naked puts because he refuses to pay-up on the vol-line for the hedge.

    Oscillator leads price... sure it does.
     
    #16     Jan 1, 2020
    MoneyMatthew and trader99 like this.
  7. ZBZB

    ZBZB

    I liked his story of the late King Fahd of Saudi Arabia calling the SP pit and buying 3000 lots.
     
    #17     Jan 1, 2020
  8. southall

    southall

    'Giving up trading is a form of death' :(

    I hope he finishes his new book about Trading and Addiction.
     
    #18     Jan 1, 2020
    Nobert and nooby_mcnoob like this.
  9. jordi742

    jordi742

    But what's the margin you need to short 14000 puts on s&p500 ? millions, I guess
     
    #19     Jan 1, 2020
  10. destriero

    destriero

    Reinsurance mkts exist because they must; they do; it’s a tautology. The market has to be serviced so the only question is at what price. These dudes get bored fat and stupid. The result is shorting a 25 vol line and letting it ride bc they refuse to pay 28 for the other leg of the vertical.
     
    #20     Jan 1, 2020
    wave, JesseJamesFinn1 and taowave like this.