Options intro

Discussion in 'Options' started by 2rosy, Feb 28, 2024.

  1. 2rosy

    2rosy

     
    cesfx, Slow Learning Elf and Quanto like this.
  2. Pekelo

    Pekelo

    Some criticism of the otherwise excellent video:

    "The diagrams actually do very well showing the concepts visually without really going into the details of the math.

    But they did cut Dr. Lo quite a few times. Especially when he's about to explain options aren't the only derivatives and that 10 trillion figure includes futures (which is arguably a bigger market because of its link to resource production.)

    I also think they did a poor job at explaining why the derivative market is so much bigger than the market in the underlying."
     
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  3. shMark

    shMark

    The math is pretty intense.
     
  4. Most of the "10 TRILLION" is the gross notional value of various interest rates derivatives (mostly interest rate swaps). The whole thing is monumentally stupid because the actual value of these derivatives is a very small faction of the notional value (which is why the value is "notional"). Anyway, back to the original programming.
     
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  5. schizo

    schizo

    Just exactly what do Black-Scholes and Jim Simons have in common? Yeah, I know he's a genius, but why was he in the video as far as options pricing is concerned?
     
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  6. Quanto

    Quanto

    Me too wonders what Jim Simons has to do with options at all :)
    I too think he did not deserve to be on that video about options.
    B/c also the following article claims that Jim Simons explicitly avoids options, futures, cryptocurrencies, and illiquid stocks :
    https://www.algotradingai.com/jim-simmons-trading-strategy/
     
    Last edited: Mar 1, 2024
  7. newwurldmn

    newwurldmn

    I think trend following and momentum investors produce a greater risk to the world than derivatives.