Obviously we already know the answer to that question. The very few who can extract excess value would not post what they do, here or anywhere else. Couldnât agree more, I would just emphasis that these people always, always over leverage and set their sites on annualized returns that no one in the history of the market has ever achieved in the long run. Additionally they almost never have the many years of trading experience necessary to understand how to handle things like the inevitable gap move, fast markets, and the deer in the headlights mentality of hoping it will come back. Hopefully their investors know enough to sue the âinvestment managerâ when the blowup happens.
Utilizing the strategy I have detailed here, what would you employ as a risk management strategy? I see the double premium mental stop as a rule of thumb which could be far surpassed as you guys said. Black swan events are a given. How would you protect yourself?
There are 2 tails at all times. Bet more on the one that won't happen, and no bet on the one that will happen?.
AFAIK, only two types of "protection" exist: a) Don't do it b) Have a very large amount of cash handy
c) Raise a huge amount of OPM. Make the bets, collect the management fees, and have an alternate passport with alternate ID ready with airline ticket to a new life when the inevitable occurs.
I have no idea what you mean - is omega angle some measure of the skew? What is horisontal and vertical risk? First time in 15 years i hear this terminology...
Dude, you are selling the protection. "hi, this is allstate, I need a quote on insurance..." You'll have to sell closer to the money and buy an even further wing, getting marginal premium.
I'm just making things up ..... I'm trying to get atticus to fall for some troll bait, looks like he wont bite.