Didn't you write in your last to "grow a pair"? Please quote the specific ad hom that you find so distressing. Thanks. The babbles are in red
"On the topic: Ask yourself why OTC dealing always involves quoting the market in vol and not premium." I have already answered but here it is again - because the bookies already know how you trade and they have a different objective.
Stardust: Humans can identify patterns and then align them multidimensionally in their minds across time. Some call this Informed Simplicity. A higher form of thinking. Try teaching this to most programmers however. The weakest link in the computer is outside the computer.
I can back that statement up by 20 years of research, thousands of psychological experiments we have conducted and the experience we get from our in-house prop trading group that uses "Informed Simplicity" gauges to trade. "The weakest link in the computer is outside the computer" Amen MAESTRO
Probably a stupid question based on above but if the bookies know the game then why is it when they leave the floor they still make trades based off of volatility plays?
AAPL shares and the AAPL Nov 385/405/425 Nov fly (neutral): The spread in the complex order (3-strikes) is 3x the spread in the shares (ECN and natural mkt). I filled that fly at a nickel off the mid. Where is the edge?
Interesting comments on informed simplicity. I will do some investigation into this when I have more time. My investment has paid off. Thanks for the contributions. Dolamite - no stupid questions, we learn by asking them. A good question, I suspect that the bookies are struggling just like us and they believe the nonsense published as well. I don't think it is an organized conspiracy or anything. The better ones survive in the job and the bad ones drop away to write books. One of my thoughts from years ago is - Most traders have no idea what they really trade. Just my two cents worth and clearly I am overstaying my welcome.