The $10 strike TSLA BSM Calls are $2,040 ITM. As a mirror image with equal payout, your "invention" would allow for the $10 strike TSLA "FairPuts"...
A much better idea would have been to put a limit/cap on the Calls so their max profit can't exceed the max profit on the Puts. So a $10 TSLA Call...
So my Tesla $10 strike regular BSM Puts only have $10 MaxLoss, but your TSLA $10 strike "FairPuts" have unlimited MaxLoss. Like someone could lose...
"Long FairPUT: LZ(const): Sx >= K(100.000000;z=0.000000) POZ(var): Sx < K(100.000000;z=0.000000) PZ(var): Sx < K-P(88.076462;z=-0.423216)...
@thecoder Your puts are nothing new. They trade already in crude oil and interest rate options on futures. You're copywriting something that...
Hey Einstein, the most any ITM 90 strike "FairPut", "DumbPut", or regular vanilla put (what most of us prefer to trade), could be worth at...
Great stuff Matt
Eliminate unwanted delta. Isolate the other 1st and 2nd order greeks to simplify your risk.
Good looking women have it so easy. They have all the power. I keep telling both my kids marry for the money, not for the looks. You'll always be...
You shouldn't be promoting and recommending to unsuspecting traders to use a deeply flawed model that would lose them a lot of money. I'm going to...
You are by far the biggest retard I've run into on ET...and that's an understatement.
The normaldist put computations only work if stock prices can go negative.
This is your methodology which you stated earlier: "lognormal is used for pricing the options (ie. calculating the premium), and normaldist is...
Normaldist to price your "Fair Puts" assumes negative stock prices, which is impossible.
Lognormal distribution: The Black-Scholes-Merton model assumes that stock prices follow a lognormal distribution based on the principle that asset...
Here do some research before you try rewriting options theory:...
Read my lips: You are modeling negative stock prices if you use "normaldist for FairPUT computations." Result: Your "Fair Puts" are going to be...
First of all, your "FairPut" idea already exists. Traders already use the normal price distribution to price options for instruments that have...
"DumbPut" trading at a huge premium over "Fair Put".
IF SLR gets back below $1.00 I'll have to back up the truck and load up on it. They just made a ridiculous amount of money for only being a $2+...
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