Infinite? You are using covered writes as an example of arbitrage boundary?! Yes, you need to re-think. I think it will be for long time.
IV_Trader, The guy you saw at Vegas may have worked out the details of it or is licensing the work of someone who already did it. Do you please know of any literature on this or the name of the guy who did it?
Topics like âperpetual optionâ are great breaks from ârisk-free-tradingâ type of discussion for everyone. While ET has an abundance of quants and traders as contributors, you would probably find more at http://www.wilmott.com/index.cfm?NoCookies=Yes&forumid=1 (sample thread http://www.wilmott.com/messageview.cfm?catid=4&threadid=287&FTVAR_MSGDBTABLE= PS (just my opinions): 1. Give riskfreetrading a break with perpetual ârisk_freeâ mocking, at least he was trying to keep some older (from this month) discussions going. 2. It is easy to just find some basic or more obscure/difficult questions about options on Wilmott and ask them around playing smart ... (especially when you use your knowledge expertise at work) âthis is regarding previous threads. 3. And remember: in general experts in options theory are worst traders than former poker players.
Holy shit YESSSS It was some guy and two hotties in black skimpy outfits handing out glowing green balls and other trinkets to attract people to the booth. I think it was the D.C. Money Show. I picked up the written materials and then chucked em when I read them and realized the idea would never fly. No detail on how they would price them, just examples of how you can buy the perpetual call and hold as the stock goes up, duh.
Great, now I have a mental image of a liposuctioned-and-muscled Peter Griffin saying "It doesn't have to make sense - I'm beautiful!"
It was a popular booth, not to mention they were giving out bouncing glowing green balls or something like that (when you bounced it, it would start flashing green and white lights). Between the cool glowing green ball and the nice pair of ta tas, I do not think anyone remembered what they were talking about.
Their website is still up: http://www.xpotrade.com/press.aspx A google search will turn up many papers on pricing perpetual options.
riskfreetrading I am â¦.. because: I provided useful link In my PS 1. I mentioned that you âtrying to keep some older (from this month) discussions going.â so others should give you a break. 2. I ask for others and you from previous thread to stop behaving like kids in kindergarten: âif you are so smart answer me this questionâ, âno, you answer me that questionâ. 3. Compared options trading to poker. I wonder why you would be giving long replies for messages that clearly make you feel offended and you practice quick offensive remarks on me.