The consequences of giving away the holy grail

Discussion in 'Educational Resources' started by Trading Education Buyer, Oct 2, 2016.

  1. Trader13

    Trader13

    Putting the notion of a "Holy Grail" aside for the moment, I think it's interesting to consider the different option prices that can result from different option pricing models. Most of the option textbooks make reference to the B-S model, but option market makers I have personally spoken with have told me they use the Cox-Rubinstein option pricing model. They probably take this decision quite seriously as it has a direct impact on their P&L.

    No doubt there are other pricing models, and you could certainly formulate your own. It would be interesting to take the option prices calculated from the commonly used models and compare them to alternative models. Then look for "divergences" and try to make a useful trading strategy from it. If this is what the OP is doing, I am intrigued.
     
    Last edited: Oct 10, 2016
    #111     Oct 10, 2016
  2. Your edge in that is already decimated by market makers.

    read these few posts and might catch the trail of the grail.This is not exactly what I do , but along these lines , and outside the greeks .

    If you think outside the box (outside the option formula) , and devise strategies outside the box , you can beat the markets.

    why don''t people just sell options instead of trading minis?

    what I do is dumb , simple and stupid ,K I S S IT WORKS , no fancy maths or greeks of zero sum formula.
     
    Last edited: Oct 10, 2016
    #112     Oct 10, 2016
  3. Telepuzik

    Telepuzik

    So is it some sort of a virus marketing for another "Monthly 59.99 USD Option Alert Service or... only 99.99 for a whole YEAR!" or somebody just watched Aronofsky's "Pi" 59 times in a row and is having "Holy Grail" bout of epilepsy as a consequence? In case it is - please press STOP on a remote and if batteries are dead - LEAVE the room with a TV asap and call 911 IMMEDIATELY. By the way maybe you found solutions to most of Hilbert's unsolved math problems as well? If yes - it may be too late for 911. Sorry. Your mind already gone to Plato's reality of absolute ideas and 911 operates in a physical world only.
     
    Last edited: Oct 10, 2016
    #113     Oct 10, 2016
  4. baboons.jpg
     
    #114     Oct 10, 2016
  5. wintergasp

    wintergasp

    So you sell options and you don't know the greeks ? Yeah. Sure.
     
    #115     Oct 10, 2016
  6. Do you need to know the greeks to make money , or the risk ,reward and probabilities?

    Do you need to know the agricultural science to make money or prices to buy and sell to make profit from selling vegetables?
     
    #116     Oct 10, 2016
  7. 931

    931

    TEB , If you continue posting for year at same rate, you will have posted almost exactly 10 000 posts in year.
     
    #117     Oct 10, 2016
    wintergasp and lawrence-lugar like this.
  8. This is keeping my trading in profit otherwise I might click the tickets and overtrade.Next week I have a break on holiday to Africa.

    you see all these amateurs , learners , deluded traders and pretenders , could do with the truth about why are all most likely to fail and how.
     
    #118     Oct 10, 2016
  9. When these become available , I will show you


    system2.jpg

    system23.jpg
     
    #119     Oct 10, 2016


  10. 34 years and 2 posts , this is dumber than dumb
     
    #120     Oct 10, 2016