He didn't even understand the question, at least with you we never touched on the subject itself, this conversation with you was just a "DERIVATIVE" you see you came in on the conversation that I had with him and from there I started a conversation with you, so this conversation was "DERIVED" from i.e. was or is a derivative of that other conversation that I had with him. But sadly he didn't even understand the question and on how to price the options, not based on attributes of its distribution, but rather in the whole distribution itself, buying a gaussian in return for delivering Cauchy... you see I am developing pricing model not based on both intrinsic and time value, but time value only and he came in with his very shallow anecdotical reference of vol disappearing when measured as reference to QM theories to which I had references in the original post as collapsing PDFs around the observation, something that he miss-conceptualised as disappearing, as the PDF does not disappear at the point of observation, merely collapsing. Anyhow, he just went right back where I said we should not take the conversation to, with volatility observations and other attributes of the traditional options pricing models... take care!
oh dude your analysis is like rudimentary excel stuff everyone did decades ago. Throwing around terms like cauchy or gaussian doesn’t make you sound smart. you should read through @destriero ’s journals to get a more sophisticated understanding of how options traders think about pricing and outcomes.
$SPX doesn't derive its value from the 500 stocks. It is the value of the 500 stocks. On the other hand Spooz DOES derive its value from $SPX, dividends, interest rate (zip, zilch many years now) and time to expiration. In this chicken and the egg parable ...... the chicken has been around decades before the egg so who in their right mind would say the chicken is derived from the egg. Where's Colonel Sanders to set things straight? Heard he was a big swinging dick in options.
Wait, what? Hahaha exactly what have I said here that has been documentation d by people in excels? Lol can you share some.one those excel files now that you have understood the question and can even remember some.excel.implementations of it? Lol what exactly is about Gaussian or Cauchy that would make you feel smart or appear so? Hahaha it's just words, same like the other word you used, what was it, yea, dude.so using the word dude does it make you feel smart ich shall I say using the word like dude doesn't make you smarter it's things that pwolledid decades ago in rudimentary excel files, hahaha idiot lol
He's correct about continuous futures but his argument about Cauchy (fat tails) is r*******. Capt, you can buy SPX "futures" by simply buying the synthetic at any strike.
What of it have you understood, about the Heavy Tails argument of WHiCH FAT TAIL IS JUST ONE TYPE!!! Learn about what you are criticizing! What of that argument have you understood, that you are condemning to be stupid?
Very original, but nevertheless you remain an answer short on what have you understood of the Heavy Tail argument that you are condemning to be stupid? Funny that you would think that you have to have attended school in order to reason!