> If you've been on the receiving end of hate speech or discrimination, you tend to be in the second camp. If you've lived a relatively privileged life in terms of 'fitting in' to the world around you, you tend to think people just need to grow thicker skin. As someone who fell into category 1 for most of my childhood, I think you have the labels reversed. I think it takes a tremendously sheltered privileged life to…
I'll remember this next time I'm in South Chicago and all those privelaged people get triggered when I use the N-word
This is comparing apples to oranges, and you know it.
Come on man, there's no where near enough volume there to move anything but the most low volume of stocks. All they trade in is meme stocks like TSLA, NFLX, MSFT, AAPL etc., and a few 100k on calls here or there won't budge the price in the slightest. On top of that, it's not even a P&D group, people there are just trading against each other, you have both bears and bulls and thetas. There's never been a concerted ef…
It's one of the option greeks. The original definition is basically the partial derivative of option price wrt time, i.e. it's the amount by which an option would lose in value per unit of time, when all else is equal. It's always negative. Theta gang just means someone who sells options and expects that option to expire worthless, thereby profiting from the slow decay of option value due to theta. It's a legitimate…
in that post what does this mean
>I use some leverage to overcome the lower premium revenue.
he uses the premium from the OTM short puts to borrow?
So I was one of the first people on Wallstreetbets to post options YOLO around 2015, back then it was nothing but rainbow dick banners and penny stocks. I had previously interned at a brokerage and had just graduated college with a degree in physics(I understood the math behind options). Not hearing back from quant trading firms because I guess BSc is not enough for them, I said fuck it and started taking speculative…
I wouldn't want to degenerate this into the morals part behind this, but I do wonder how you feel about this now looking back: To be +ve you had to exist in a world watching people go -ve, in a very direct way. I only have managed funds for my pension, I appreciate its not holier-than-thou its just indirectly filthy instead of mired in the pigpen. Total system? its mostly a zero sum outcome against normal incremental…
hmm, I take it you mean +ev and -ev ? not sure if I'm revealing too much, but as someone who is not white, or one of the "model minority", who grew up in what many would consider the "hood", attended one of the worst high schools in the country, I have felt my life has been inherently -ev due to the zipcode I grew up in / the color of my skin, who sees the many anti-AA views on this forum (advantages gained from AA are way overstated, if anything it helps rich URM more than those who are poor) and has been discouraged from pursuing a job in traditional tech given all the bullshit about inclusion and diversity that is spewed while their actions say otherwise, I consider the stock market the great equalizer. The barrier to entry is lower than most tech jobs and the color of your skin or your background doesn't change the potential outcome when a trade is placed, getting a job in the industry is a different story though. I've had a hard time hearing back from quant firms (quant from bb that rhymes with oldman slacks said my cv had too many "red flags" to be considered). When talking to universities about grad school, they really didn't give a shit that I was a URM like a lot of people will have you believe, they just wanted money. This bought me time to pursue independent study, where I've been teaching myself stochastic calc, math behind ML, additional programming in hopes of landing a jr quant role where performance is more objective with less layers of abstraction when it comes to value provided, people don't really care how you look if you you can point directly at how much money you made them. So given that most my life has been inherently -ev, I'm not going to lie it feels great for a change and I plan to run with this. Given where I grew up, dog eat dog is what I know, I thrive under pressure and stay rational in chaos, growing up I've had to hyper-analyze situations to anticipate any worst case scenarios that might occur and gtfo before shots are fired. I guess if I were a character from Peanuts, I'd be Pig-pen.
> I am one of the best options traders in the world. The best traders in the world are worth billions? So the above translates to "I am a billionaire". Seems unlikely!
Well, they could have fantastic results with very small volumes in niche situations. Whether that merits the title, on the other hand...
I don't think that would merit the title - when you're talking about small niche situations it's harder to make the case that fantastic results are a result of skill versus luck + selection bias, and even if it's skill then you're not one of the best options traders, you are one of the best traders in that niche.
A comment I'm sure you expected you'd get on this forum: you're gonna have to elaborate a bit on/defend a bit that opening line there about being one of the best options traders in the world.
Even if that's not the best options trader in the world, its still a much better explanation than the post being replied to.
Oh yeah the explanation was much better, but this is one of those cases where the claim of being the best options trader makes the explanation less credible than if they hadn't opened with that and ended with "i've never taken a course" etc. Without it, they're citing the book and wikipedia, but with those statements, they're citing their own expertise and raising questions over their judgement on what sources they are drawing from.
It's one of the option greeks. The original definition is basically the partial derivative of option price wrt time, i.e. it's the amount by which an option would lose in value per unit of time, when all else is equal. It's always negative. Theta gang just means someone who sells options and expects that option to expire worthless, thereby profiting from the slow decay of option value due to theta. It's a legitimate…
in that post what does this mean >I use some leverage to overcome the lower premium revenue. he uses the premium from the OTM short puts to borrow?
It means he doesn't have the entire notional amount of an option to cover the short put.
For example, if you want to sell an SPX put at $3000 strike, then the notional value of that trade is $300k. He doesn't have $300k in the account for that one trade though. If you want a leverage factor of 2x, then for $300k in the account you'd trade two such options, each having a margin equity of $150k. Since you're trading two options, the profit and loss are both enlarged by 2x. The worst case scenario is that if SPX drops by 50% and he doesn't take any action before that, he'd have no money left.
The author mentioned that he uses a leverage of 2x to 3x. That means you need $100k to $150k in the account to trade a single contract. Hardly for beginners.
I love finding comments like this where I understand very little. (I am not being sarcastic). Excellent for learning.
It's a bunch of mumbo jumbo from someone that takes the academic side of finance too seriously (LTCM anyone?). In plain English: Options are basically a contract, with a time limit, that states the holder can buy a certain amount of stock at a certain price. "Options dealers" are the people who wrote the contract and sold it to another party. They are on the "hook" for fulfilling the terms, if the buying party wishes…
> someone that takes the academic side of finance too seriously
You know, that's totally fine with me. It's good to have those people around. As I learn more I'll be able to decide for myself what I think of that perspective. Your side is great too.