was that a black swan for call and straddle sellers in WMT?

Discussion in 'Options' started by SoesWasBetter, Nov 16, 2017.

  1. sle

    sle

    People die at random, but that does not seem to deter the insurance companies from selling life insurance.
     
    #11     Nov 16, 2017
    iprome, tommcginnis and ironchef like this.
  2. tastytrade. It is one of their favorite strategies on "high rank IV" stocks.

    Didn't work well this cycle with GOOG, AMZN, MSFT, INTC, BIDU etc. - all moving much more than expected.
     
    #12     Nov 16, 2017
  3. ajacobson

    ajacobson

    "People die at random, but that does not seem to deter the insurance companies from selling life insurance."

    So the way to win in the insurance equation is to die prematurely!
     
    #13     Nov 16, 2017
    JackRab likes this.
  4. sle

    sle

    If we take a late retirement and an early death, we all should be OK.
     
    #14     Nov 16, 2017
  5. ajacobson

    ajacobson

    Tough formula to collect.
     
    #15     Nov 16, 2017
  6. I love collecting premium like an insurance company sells insurance. But an insurance company will do a min of a test. If you have the slightest thing - for example, you smoke 1 cigarette - you’re a smoker. I’ll sell for premium every week except earnings week. I’ll sell insurance to everyone but the smokers. It’s just easier.
     
    #16     Nov 16, 2017
    fyretrading likes this.
  7. Very easy for some master of the obvious to think that WMT , massive float and all , could not possibly move ,no less go UP 10% in a day.

    Wrong.
     
    #17     Nov 16, 2017
    MauricioMTL likes this.
  8. newwurldmn

    newwurldmn

    I think it was Chris rock who said that buying life insurance makes no sense. You are betting with the insurance company on when you will die and you hope they lose.
     
    #18     Nov 16, 2017
  9. sle

    sle

    Indeed. The only people worse than insurance company are life settlement people :(

    There is a price for everything. If you are a smoker, they would still sell you life insurance, it's just going to cost more. You can do the same with options.
     
    #19     Nov 16, 2017
    ironchef and tommcginnis like this.
  10. ajacobson

    ajacobson

    Oh yeah. This is that old analogy the actuaries at insurance companies are really just calculating volatility:)
     
    #20     Nov 16, 2017