Risk reward sucks for options

Discussion in 'Options' started by wxytrader, Jul 29, 2024.

  1. 2rosy

    2rosy

    You were given option sheets that provided theoretical prices for given volatility and underlying. The math was more arithmetic and squaring your position.
     
    #91     Aug 3, 2024
    wxytrader likes this.
  2. Options are obviously different because of the dimensions.
    Namely, theta.
    tick tock tick tock.
    What just happened??
    tick tock tick tock.

    You just have such an edge on the statistical mechanics of the universe that there are all these option mispricings you are exploiting lol.

    Like I said, numeric performance art.

     
    #92     Aug 3, 2024
  3. cesfx

    cesfx

    It probably is a sort of numeric performance art.

    And as a punk fan, you are right not to waste your time trying to understand anything about the arts.
     
    #93     Aug 4, 2024
  4. ironchef

    ironchef

    Options are fascinating animals.

    They not only have expirations, option prices within the chains for an underlying are all linked.

    My question for you sir, is, if they are forced to be linked, can this linkage force mis-pricing?

    Thanks.
     
    #94     Aug 5, 2024
  5. 2rosy

    2rosy

    eurodollar options. The guys yelling for markets are brokers. The guys with folded sheets in there hands and not saying much are MMs
     
    #95     Aug 5, 2024
  6. nitrene

    nitrene

    I believe they call this YOLOing. The amount of people on r/WSB who put a lot of their portfolio on 0TEs or weeklies is astounding. So many blow ups on r/WSB. I think for awhile after Bill Hwang lost billions he was their loss porn mascot.
     
    #96     Aug 6, 2024