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Post by huh on May 11, 2015 11:38:07 GMT -5
Keep it coming! KEEP IT COMING! Muhahaha
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Post by walnut on May 11, 2015 11:39:33 GMT -5
wow, a spectacular image haha
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Post by huh on May 11, 2015 13:41:16 GMT -5
This month's IWM 124 calls (exp. this week) up more than 30% while IWM near LOD. Strange action, especially considering today's lack of action.
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Post by walnut on May 11, 2015 13:50:36 GMT -5
strange quirk of options, calls tend to move up relative to their true (market) value as the puts move up, so that the equation of "put-call parity" continues to hold. If the market makers were to let the equation not equal zero, they will begin to lose money. But the knowledge of this lets you make money the other way by selling the calls which are unrealistically overvalued sometimes. All this because, the implied volatility only responds to downside risk, not to upside.
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Post by huh on May 11, 2015 13:53:14 GMT -5
strange quirk of options, calls tend to move up relative to their true value as the puts move up, so that the equation of "put-call parity" continues to hold. If the market makers were to let the equation not equal zero, they will begin to lose money. But the knowledge of this lets you make money the other way by selling the calls which are unrealistically overvalued sometimes. All this because, the implied volatility only responds to downside risk, not to upside. είναι όλα ελληνικά για μένα
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Post by walnut on May 11, 2015 14:01:32 GMT -5
The reason market makers would begin losing money is because traders would immediately begin selling synthetic calls and buying actual calls (risk reversal spreads) if put call parity was not maintained.
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Post by huh on May 11, 2015 14:05:35 GMT -5
The reason market makers would begin losing money is because traders would immediately begin selling synthetic calls and buying actual calls (risk reversal spreads) if put call parity was not maintained. And you thought that made it easier? LOL. JK I actually understood the first post (or thought I did). The second one, not as much. I had no idea what a synthetic call was. Only shows that I have some studying to do.
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Post by crumbdon on May 11, 2015 14:49:19 GMT -5
The reason market makers would begin losing money is because traders would immediately begin selling synthetic calls and buying actual calls (risk reversal spreads) if put call parity was not maintained. And you thought that made it easier? LOL. JK I actually understood the first post (or thought I did). The second one, not as much. I had no idea what a synthetic call was. Only shows that I have some studying to do. Can I reasonably surmise that Synthetic Calls must be somehow based upon Synthetic Gains- you know, the kind that QE has been producing the last few years?
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Post by walnut on May 11, 2015 14:54:08 GMT -5
Might as well be, cause I never could make that scheme work when I have tried it. You can't beat GS at their own game haha
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Post by crumbdon on May 11, 2015 15:02:02 GMT -5
That's true. The Gold Man-sacks are much like the One Ring to Rule Them All.
Resistance is Futile.
Ok, quitting now. Too many mixed metaphors.
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Post by huh on May 11, 2015 15:11:48 GMT -5
Is it just me, or was there something really odd about the action today? I know, market was down some. And that is odd, but something else. I can't put my finger on it.
Maybe I just didn't sleep enough. [shrug]
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Post by dino on May 11, 2015 15:12:48 GMT -5
So I'm assuming if one is undecided between synthetic and conventional, they could use semi-synthetic?
Nyuk, Nyuk, Nyuk....
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Post by huh on May 11, 2015 15:16:16 GMT -5
Stop it Dino, you're more confusing me!
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Post by dino on May 11, 2015 15:25:40 GMT -5
Join the club. Whenever I think I have a handle on options, a simple comment like the one above comes along from someone who does know and I feel like a...
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Post by dino on May 11, 2015 15:26:11 GMT -5
είναι όλα ελληνικά για μένα Is that Russian? And would you translate please? It means...
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Post by huh on May 11, 2015 15:28:47 GMT -5
LOL Dino. You're cracking me up. That pageant contestant response is too much!
Novie, it's Greek, and means "It's all Greek to me".
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Post by huh on May 11, 2015 15:30:40 GMT -5
I too thought the market would be green today. And with today's close, IWM says market up, VIX scams say market down, Naz says market up, ES says market down.
That's it. I'm done with charts. Too indecisive and voodoo-like anymore.
I'm switching to reading bones. Specifically those of dead bears.
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Post by huh on May 11, 2015 16:14:04 GMT -5
I think we should have a moment of silence for all those poor ETSY buyers yesterday. Typical retail trader likely got in a little over 34.00 - already down ~14%+. When will people learn not to buy these 'crafty' wealth transfer systems? Insiders Pulling Out Now those initial buyers down ~38%+ Spouses at bingo halls all across the country tonight, "You're down HOW much!?! What were you thinking? A forum to buy and sell CRAFTS?!? They've been doing that since before the first pyramids were built, you IDIOT! Didn't you even consider I might leave you over this?!" "BINGO!"
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Post by huh on May 11, 2015 16:46:24 GMT -5
Etsy got me thinking. I said before that it seemed the market was only rallying recently because of short squeezes. Low volume rallies on the backs of topping pattern after topping pattern.
IPOs have been doing horribly.
IPOs typically don't have many shares available to short, if any.
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Post by birthmark on May 11, 2015 18:14:01 GMT -5
Still watching: DDD MOBI KNDI All held up fairly well today (all things considered) Like Huh, I think we squeeze higher still. GL I saw a lot of talk on KNDI last week & this morning over on ST, and I remembered it was mentioned here. Quick look at the chart says to wait for a long position until it proves over the downtrend line (slight possibility of a descending triangle). That line sits ~12.95 today. BTW, MOBI looks like it may be completing a H&S consolidation here. That smaller iH&S possibility I showed before on the hourly looks to have failed. Thanks for these Huh. I'm avoiding all 3. KNDI took a bath today. I'd only play that for a bounce but good luck timing that! MOBI bounced today but too unpredictable. And DDD isn't worth the effort. Are you still in DUST? Thinking of grabbing some when it drops back into the 12s GL
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