Ritesh Kakade

Also, modern mathematics is essentially platonic in its approach based upon axiom based theorems/proofs. This approach is heavily used and relied upon in disciplines like economics to get some important insights (though turning out to be wrong almost all of the time). 1/n

In 2003, after a thorough study of the Mahabharata, Giampaolo Thomasetti began work on a large-scale project dedicated to it. After 12 years, he completed his collection of over 20 majestic paintings depicting the main moments of this great spiritual epic. 👇

You might see the government is suddenly obsessed with getting a gas pipe into your kitchen (PNG) instead of just delivering a cylinder (LPG). It actually comes down to a massive math problem we are trying to solve. Most people think gas is just gas but they’re actually totally different chemicals. LPG is the stuff in the red cylinders (propane & butane) and is basically a scrap product. When we refine crude oil to make petrol and diesel, we only get a tiny sliver of LPG (about 3%). Even though India has world-class refineries, we just can’t squeeze enough LPG out of a barrel of oil to feed 33 crore households. This forces us to import a staggering 60% of our LPG, mostly from the Middle East. If a war breaks out or a shipping lane like the Strait of Hormuz gets blocked, those cylinders stop showing up at your door as usual. Natural Gas (which is then sent as PNG), on the other hand, is a primary fuel (mostly methane). We actually have plenty of it sitting in our own ground in India. While we still import some, we aren't nearly as dependent on the Middle East for it as we are for LPG. By moving city folks onto pipelines, the government is essentially freeing up the limited supply of cylinders for rural villages where you can't easily dig pipes. It’s a huge logistical reshuffle to make sure a crisis in West Asia doesn't leave the masses unable to cook. There's also another angle here. Countries like the US and Qatar don't even need refineries to get LPG, they just suck it straight out of massive "wet" gas wells. India doesn't have those specific types of wells. So, for us to keep using LPG, we have to keep buying expensive crude oil and hoping the 3% we get as a by-product is enough. Over the long term, in hindsight, it was a losing game. Indian bureaucracy should have envisaged this and prepared in advance, esp. when Ujjwala Scheme more than doubled the number of LPG connections to ~32cr. That was a strategic mistake. Switching to PNG is basically India’s way of saying that let's stop relying on a byproduct that we lack domestically and start using the methane (natural gas) we actually produce at home. It’s safer, it’s underground (so it's harder to disrupt during a war), and it keeps the supply chain running even when global oil prices go crazy. For an average person, it’s the difference between waiting for a truck that might not come and having a tap that never runs dry.

RIP, John

Would love to hear feedback on the simulation and strategy. The results however are in line with the theory. The strategy pays off well at low IV (4/n)

The strategy theoretically is supposed to make money if the realised vol is more than what we paid. There’s no vega gain since IV is kept constant. Trend is a risk here. We run strategy for 3 IVs (10,15,20) on same 10k paths. Delta hedging threshold remains same. See pics (3/n)

Does delta hedging work for retail? Let’s explore via a simple strategy for a 20DTE options. At T=1, we buy ATM straddle and delta hedge(as per threshold every 15min). Exit on expiry. #niftyOptions #deltahedging #Strategy @Pankaj_ji_Mwale sir, please give your views (1/n)

@saketh1998 Not true. Bankex high IVs incorporates recent high RV of bankex vs bank nifty. Historically, we see bankex as more volatile than bank nifty. See below close to close daily volatility stats for 1 year (specially the highlighted part). Options are priced as per vols.

If we compare Bankex (BSE) and Bank Nifty, we notice something interesting. Despite having almost identical constituents and moving in a very similar manner, there is a significant difference in implied volatility (IV). Currently, Bankex is trading at an IV of around 14, while Bank Nifty is at about 11.5. This means that for nearly the same underlying risk, Bankex is offering higher option premiums. In essence, both indices are sharing almost the same directional and volatility risk, but Bankex is compensating traders better for that risk. We observed a something similar when Sensex derivatives were first introduced during the early phase, Sensex options consistently offered better risk premiums compared to Nifty. The only real trade off here is the liquidity. Bankex currently has lower liquidity compared to Bank Nifty. However, for smaller lots to try it will be manageable. For sellers trading smaller lots, Bankex can provide a superior risk reward setup, offering better premiums for nearly the same market exposure as Bank Nifty.

Nothing insane. It’s basic RV vs IV game. 🤦‍♂️

IIT Madras has recorded a significant defence-technology breakthrough with the development of ramjet-assisted artillery shells capable of extending the range of existing gun systems by nearly 50%, without any loss in lethality. The innovation embeds a ramjet engine within a standard 155 mm artillery shell, replacing the conventional base-bleed unit. This enables sustained propulsion after the shell exits the gun barrel, resulting in longer range, deeper strike capability and enhanced operational flexibility — all without the need for new artillery platforms or costly missile systems. Trials across multiple platforms show substantial range improvements:  • ATAGS: 40 km → ~70 km  • Vajra: 36 km → ~62 km  • Dhanush: 30 km → ~55 km The project led by Prof. P. A. Ramakrishna, IIT Madras, along with Lt Gen P R Shankar (retd), Prof. H. S. N. Murthy, Prof. G. Rajesh, Prof. M. Ramakrishna, Prof. Murugaiyan, Lt Gen Hari Mohan Iyer (retd), Prof. Lazar C, Dr Yogesh Kumar Velari, Maj. Gen. Rajiv Narayanan & Prof. V R Lalithambika was launched in 2020 in collaboration with the Indian Army, the project has undergone extensive gun and field trials at Deolali and Pokhran, successfully validating clean gun exit, stable flight and reliable ramjet ignition. This work highlights the impact of Atmanirbhar Bharat and demonstrates how upgrading existing systems can deliver cost-effective, survivable and future-ready firepower for modern battlefields. @iitmadrss #IITMadras #IndianArmy

@liquiditygoblin @olasbondolas @0xDmtri @grok pls explain

@olasbondolas @0xDmtri no lol, bank hedges on a daily time frame at the close so realises volatility that happens to be lower, MM hedges much more aggressively intraday, so gamma scalps opening moves & realises a higher volatility

junior options interview question: you're on an index options market making desk & buy a front month straddle OTC with a bank, crossing at 24 vol. both you & the bank use the same option pricing model. you both think you made a good trade. why?

@Pankaj_ji_Mwale @1lot_fader I was about to get trapped in this GEX thing. Also created a python based dashboard and started analysing it. Realised it doesn’t give any actionable additional info than the already existing OI data. Thanks for sharing your view!

Soch raha hu blue tick lekar GEX par likhdu 100-150 words..... (though I don't know anything about it)

This article, published by The Print and written by Karanjeet Kaur, is a prime example of how Boomers and Millennials fundamentally misunderstand Gen-Z! This thread shall serve as our generation's perspective on this topic, and I hope someone from The Print comes across this 🧵

@Pankaj_ji_Mwale Straddle kharidna padega kya? 😛

@p_gammae 😂😂😂

@Pankaj_ji_Mwale Got it. Thanks for the reply! 🙏

@Pankaj_ji_Mwale Isn’t the delay from exchange applies to all market participants? In that case, GEX exposure across strikes won’t be that helpful but GEX percentiles still gives us insight into movements in the index as is argued in the original post. Is that correct interpretation?

@Pankaj_ji_Mwale Sir ji, a question. If I have expiry day minute wise OHLC data for all strikes. Then I calc net GEX using close prices for that minute. Will this GEX be a fair representation of dealers position on a particular strike?

@pranavvk This is so true! Even backtesting nifty with simple rules of supertrend or ma crossover will show this. Particularly, in trend following, attempts to create rules which “predicts” the trend often leads to overfitting and always underperform vs simple rules with position sizing

Please no...No trend follower starts betting when the market is about to kickstart. This is just wrong. You want to grab the center part of the distribution. You will almost never get the start and the end of a trend. Just NO!!