@yszarapide @larpcapitalwc Yes - I’m an exotics guy. Very rare to not be delta-hedged. In our world more common to trade varswaps for pure vega, which would be a much larger number.
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derivs go brrrr
350 posts
derivs go brrrr
@linkerthegreat
cross asset exotics. rt ≠ endorsement
Katılım Şubat 2013
21 Takip Edilen80 Takipçiler
@linkerthegreat @larpcapitalwc Trading vol component I presume? As opposed to the conventional “price has to move outside/inside the breakevens blah blah”
What I’m getting at is the strategy has its place, sure, but overall it’s largely a “bolt-on” for an existing portfolio. money to be made, but no homeruns
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If a delta is the probability an option ends up itm I just can’t understand why you’d buy/sell a straddle when the net delta is 0 so you have basically a 0% chance of making money
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@yszarapide @larpcapitalwc ~500k on vanilla straddles if I had to napkin math
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@SteepGreeks @larpcapitalwc This difference used to be my standard 1st round jr interview question
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@larpcapitalwc delta N(d1) is NOT prob of exp ITM, N(D2) is....common error
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@yszarapide @larpcapitalwc I’ve made plenty on straddles over the years
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@larpcapitalwc I know it’s a joke but in all honesty, name one person who made money on straddles. Even like a hero trade or a well known investor/trader/fund, I truly cant think of any and suspect the vast majority of traded straddles are pure quant driven for like a 0.2% over 1 or 2 days
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@svrnco I would argue most of the unhappy ones were the type that thought they were unhappy bc they needed $. Only once they had it did they realize they were still unhappy. By contrast, those who are happy and make $ tend to remain happy.
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I know a bunch of people who’ve hit 8 figs or mid/high 7 figs. The ones who quit to do nothing while young generally ended up unhappy. The vast majority of people who hit 8 figs continue to work on something.
Wild West Capital@BuffaloBillCo
Increasingly certain the core problem with our society is its run by a bunch of mentally ill psychopaths whose primary motivation is success for the sake of success. Anyone who doesn’t quit their job to play golf and drink after hitting $10M should be put in an insane asylum
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@DragoCordis @Ankisucks @eclairification Per BLS, 10th percentile wage income decile is ~15.50/hr. The only group for which ~30 percent are below 15/hr is for HS dropouts without a GED.
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@Ankisucks @eclairification 30% of the labor force makes 15$/hrs or less and virtually no where in America is that a living fucking wage lol over 45% of Americans live paycheck to paycheck and cant afford a 300$ emergency.
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the federal minimum wage is still 7.25. I am 34 and have never made more than 20k/yr, rarely more than 15. it’s really important that i, as a working person oppressed by capitalism, follow news and politics coverage written by people paid 6 figures to live in the culture city.
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@Michael05807267 @Oilfield_Rando That’s… a pretty average timeline?
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@Oilfield_Rando Look at the DEI creds, she absolutely did all this. Theres no fucking way she could girlboss like this without some kind of cucked sub to vent everything on.
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@spotgamma @quantian1 How do you think the single stock derivs trader is going to price when you ask for a risky on 10% of the company?
(Hint: you’re asking her to take the same risks as the block trader, plus some new and nasty ones)
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@quantian1 couldn’t you just collar it and essentially take a 5-10% spread
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@ItsKasum Not a watch guy myself (wear an Apple Watch), but
1. They’re shockingly good investments if you pick well
2. A lot of the 20 somethings probably make 10x what you think they make. *Tons* of eye-watering W2s in Midtown
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I recently started working out of our office in Midtown.
The amount of Rolexes on 20 something year olds is outrageous.
Either it’s daddy’s watch or they don’t have their priorities straight
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@tirpobelli15 @ajlamesa American workers make way more across the board - CEOs included 😅
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@linkerthegreat @ajlamesa ok i'm glad our insanely high fligh tickets fill pilots' pockets. i thought we were growing ceo paycheck, i was wrong.
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When you have Spanish or Sicilian costs and wages, you can operate extremely cheap flights. The United States has a cost structure that's like Norway, Luxembourg, or Switzerland. As I've said before, a lot of Americans seem to want Spanish wages and Swiss Salaries.
Alex Kehr@alexkehr
the american mind (me) cannot comprehend european airline flight prices can i just book all 190 seats for $3400 and have a private 737 flight?
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@tirpobelli15 @ajlamesa Pilots at SAS make ~20% of what US pilots make. Not sure of FA/other staff offhand but would not be surprised if similar.
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@ajlamesa Problem is, SAS also has cheaper flights than Americans could only dream of.
Are you really thinking this is the argument that nobody could think of, thus it'll net you a win in the debate?
lol
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@Honey1412527 @caliecalister All of the banks will devote considerable resources towards convincing wealthy clients that their specific flavor of special accounts are the best.
Most have *some* unique benefit - all a question of what you value.
Naturally, benefit <= what they expect to make off you :)
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@linkerthegreat @caliecalister Yeah but you’d have to have access to that sort of money in the first place anyway so why does it matter if it’s the King Charles bank or Lloyds? Do they pay interest on deposits or something? Or is it just a status thing?
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The company I worked for consulted for them in 2019-2020 and they HATED HATED that most of their clients were now footballers and YouTubers instead of global royal families.
Mr Family Office@MrFamilyOffice
King Charles’ bank just got even more exclusive Coutts, the centuries old private bank to the British establishment, triples the minimum to £3M
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@Honey1412527 @caliecalister Lot more features / access / etc.
Think anything from “I want to own shares in SpaceX,” to “help me set up a generation-skipping trust so my grand-niece can be cared for even though my nephew is a cokehead,” to “help me with self-insurance.”
Whether worthwhile is debatable.
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@caliecalister Sorry but does it make a difference what bank you have an account with? What’s special about this one that you need 3 mil to bank with them?
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Economics / finance terms or concepts that let me know somebody is an idiot or grifter:
Generational wealth
Dividend investing
Option selling
Petrodollar
Passive income
Income streams
XXX priced in gold
Others?
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@N0tAnthonyDavis @conorsen If you travel a bunch, easily. I run a lot of work travel through my cards. Point value alone far exceeds fees.
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derivs go brrrr retweetledi
Good advice. All real edges decay over time. So your rate of improving the strategy determines your outcome:
improvement > edge decay => pnl growth, understanding compounds
improvement = edge decay => stasis
improvement < edge decay => eventual death
Note that if you stop improving the strategy you aren’t in stasis, you are in the start of your eventual death arc.
zbangas@boat460
having been on multiple desks I cannot emphases the importance of continuing to improve the trade. having personally been on desks trading very similar variants of strategies, its always interesting to see how widely pnl varies from the firms have put in to bettering the trades
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@robinhanson Fund/manager selection matters far more in privates than in publics.
There’s strong adverse selection in the private funds that make themselves available to wealth channels today. This would only get worse with true “open access.”
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We over “protect” the public, and hurt society, by requiring one have $5M+ to invest in private firms, which on average get substantially higher returns than the public firms that every one is allowed to invest in.
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@bennpeifert I like structured notes a *lot* more than you and this still cracked me up
(They have to be designed right - most aren’t)
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oh hell yeah we flipping long dated skew on whether Mamdani leaves his wife for Mia Khalifa
Tarek Mansour@mansourtarek_
Structured notes are popular on Wall Street. They help investors enhance yield by taking a view on an event that is, ideally, uncorrelated with the bond they're buying. Historically, these views are limited to events on traditional market outcomes: S&P>6.5k, Nikkei<53k, oil<60... But the risks investors care about are broader than traditional market outcomes. The gap creates basis risk. Prediction markets can help issuers structure notes tied to almost any event: geopolitical, macro, inflation, company specific KPIs, inflation... Portfolios could get significantly more precise.
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@mjesuele @LacertaXG1 Can trade with insti desks if they want + get decent pricing
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@LacertaXG1 1 has to be a big part of it. Even as a small retail trader, I’m often shocked by just how bad bid/ask spreads are on single stock options.
Of course, more demand would likely beget more supply, but it’s a bit of a chicken and egg problem.
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I still don’t really get why L/S PMs dont use options more, compared to macro/commods desks. here are some plausible explanations, but I'm not sure which is the most important
1. Single stock options are insufficiently liquid, because liquidity fragments across a larger N. i.e. if you are going to be any nontrivial % of adv for a stock, no shot you can express it in options.
2. Lack of specialist knowledge on options… i.e. macro folks seem to have more of a stem background and maybe take to option theory more naturally?
3. Institutional reasons: multi-managers think it's easier to risk-manage cash equities, and this has percolated into standard practice for L/S.
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@Nemanja1911 @wolfofshelby @nequalonetrader Not true - you *can* make it so your online status isn’t visible but very few do.
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@wolfofshelby @nequalonetrader You can only see status for people you’re connected with inside the terminal
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