Why would you tell me that when I am not close to a TV?!?!?!!?!? I almost grabbed that issue but then I saw that it was just a cover shot and she was not in the magazine lol. I told her last night to just get payment for use of the pic and let it go since it is good publicity
Delta-hedging is a wierd thing. For example, in a range-bound market, both long and short gamma positions can make money. How's that for zero sum game?
Agreed, by hedging delta with the underlying, in which case the final P & L is path dependant. Isn't it still zero some, as in the net wealth of all the DN trading (gamma scalping) participants won't change - it merely gets re-distributed ?
I have seen few times comparison to insurance, and have to say I like it. Options are financial insurances, aren`t they ? Then someone pays to insure his portfolio and seller must know how to run the business to not go down if he is obliged to pay compensation.
options are zero sum period within the options universe, the net position is necessarily zero it's a matter of math one can make great money in options, and they can be used to speculate, hedge, or provide income but they are zero sum the system is closed, and each position has a corresponding postion that cancels it out thus, neutral. thus - zero sum stocks of course are not zero sum