Trading optionality from first principals

Discussion in 'Journals' started by metalztrader, Dec 15, 2023.

  1. I will run a $20k option portfolio for 2024 based on first principals.

    principal 1: the market is always wrong.

    I think we go neutral as the least wrong position assuming basically anything linear, anything neutral, predictable,
     
    murray t turtle likes this.
  2. MarkBrown

    MarkBrown

    how many millions of option traders have gone down this path, to never have been seen again. :(
     
    murray t turtle likes this.
  3. schizo

    schizo

    In that case, let this be Principle 0

    upload_2023-12-15_22-20-57.png
     
  4. Normally, there is only one principal at every school.
     
  5. Supposedly the volatility risk premium is real, so it should work, theoretically..
     
  6. %%
    1] I think you meant option market data is all most always wrong LOL:D:D;
    the cash metals dealers i deal with/ are seldom wrong:caution::caution:.But looks like you know your dealers better than me........
    And even what appear to be errors\ one dealer likes to round up to nickles I say ' thanks' + dont try to correct them on that rounding gift or error LOL.
    NOT that they will give seller a nickle per pound on a truck load of tons LOL.
    Good principle :caution: