# The Covered Call Panacea Redux



## wayneL (13 April 2015)

It's whack a mole. Covered call spruikers keep popping us with the same farking BS...

My FaceAche feed is being spammed with the latest iteration of the "earn 3-4-5-WHATEVER% per month"

Time for another thread on this topic, especially as we seem to have some well educated optionistas here now.


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## cynic (13 April 2015)

wayneL said:


> It's whack a mole. Covered call spruikers keep popping us with the same farking BS...
> 
> My FaceAche feed is being spammed with the latest iteration of the "earn 3-4-5-WHATEVER% per month"
> 
> Time for another thread on this topic, especially as we seem to have some well educated optionistas here now.




May I start a thread on naked written puts?


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## wayneL (13 April 2015)

cynic said:


> May I start a thread on naked written puts?




Of course


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## cynic (13 April 2015)

wayneL said:


> Of course




You won't mind if I borrow the profit graphs from here then?

It's just that I'm not very good at drawing them and they should be nearly the same.


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## wayneL (13 April 2015)

cynic said:


> You won't mind if I borrow the profit graphs from here then?
> 
> It's just that I'm not very good at drawing them and they should be nearly the same.




They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!
They're not the same!

.... are they?


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## cynic (13 April 2015)

wayneL said:


> They're not the same!
> They're not the same!
> They're not the same!
> They're not the same!
> ...



That's okay! I'm willing to take my chances. The newbs that I'm intent on marketing my $5,000+ webinars and weekend workshops to won't notice the difference!


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## wayneL (13 April 2015)

cynic said:


> That's okay! I'm willing to take my chances. The newbs that I'm intent on marketing my $5,000+ webinars and weekend workshops to won't notice the difference!




OK

How many % per month is your offer? I have to do my cost benefit analysis 

The FaceAche guy is offering 3% per month for $10k.... reduced to $4995 if I get in quick. :


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## cynic (13 April 2015)

wayneL said:


> OK
> 
> How many % per month is your offer? I have to do my cost benefit analysis
> 
> The FaceAche guy is offering 3% per month for $10k.... reduced to $4995 if I get in quick. :




At the moment I can get you 300-400% returns over 6 months*

I was going to charge a special rate of $6k for the first 100 takers, but since you're a mate, I'm willing to offer you a VIP ticket at the bargain basement wholesale discount price of only $10,995 in two easy to pay instalments.(Please don't tell anyone else though - I don't want them to think that I'm getting soft!)

*contingent on the DAX not dropping below it's current all time record high prior to September expiry


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## wayneL (13 April 2015)

cynic said:


> At the moment I can get you 300-400% returns over 6 months*
> 
> I was going to charge a special rate of $6k for the first 100 takers, but since you're a mate, I'm willing to offer you a VIP ticket at the bargain basement wholesale discount price of only $10,995 in two easy to pay instalments.(Please don't tell anyone else though - I don't want them to think that I'm getting soft!)
> 
> *contingent on the DAX not dropping below it's current all time record high prior to September expiry




That seems a bit low. I wanna get rich quick! :


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## wayneL (13 April 2015)

wayneL said:


> That seems a bit low. I wanna get rich quick! :




Can you you turn my $795 ( all my worldly wealth after I've piad fro your course) into a million in a year?


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## cynic (13 April 2015)

wayneL said:


> Can you you turn my $795 ( all my worldly wealth after I've piad fro your course) into a million in a year?




For an additional $695 I can offer you my Casino Pro Martingale Systems (TM) betting webinar module. That'll guarantee exponentially increasing gains* on your residual $100

*contingent upon never losing a single even money bet on the roulette wheel at your chosen casino gaming venue


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## galumay (13 April 2015)

I knew if I hung around ASF long enough some of the knowledge would rub off, sign me up please!


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## cynic (13 April 2015)

galumay said:


> I knew if I hung around ASF long enough some of the knowledge would rub off, sign me up please!




I can see that you are a most discerning and intelligent investor. Step right this way!

Take note everybody! Only 99 places left! So you'd better be quick! They're filling up fast!!

P.S. All major credit cards accepted. 2-5% surcharges apply.

P.P.S. Audited broker statements?!! Why on earth would you want to see those?!!!


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## DeepState (13 April 2015)

cynic said:


> I can see that you are a most discerning and intelligent investor. Step right this way!
> 
> Take note everybody! Only 99 places left! So you'd better be quick! They're filling up fast!!
> 
> ...




Chart Breakout!  Get me set.  I'm in.
What's a broker statement?  I'm not interested in going broke, let alone, broker.


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## cynic (13 April 2015)

DeepState said:


> Chart Breakout!  Get me set.  I'm in.
> What's a broker statement?  I'm not interested in going broke, let alone, broker.






No need to worry yourself about broker statements - only losers ever ask about those!! And I can see that you're an astute investor with the ability to recognize and appreciate premium quality financial education at a glance!

So welcome aboard!

Take note everyone!! 

Only 98 places left and they're selling fast!! 

He who hesitates is lost! Secure your future Now!!!

P.S. AFSL number ?!!! I think I borrowed one from some company or other last year. Can I get back to you on that?


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## hhse (14 April 2015)

With just $1,000, you can be a millionaire in just 2.5 years. Sell call options on CFDs and you can make 30% per month. That's 2300% return per year!!! Sign up right now.


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## wayneL (14 April 2015)

hhse said:


> With just $1,000, you can be a millionaire in just 2.5 years. Sell call options on CFDs and you can make 30% per month. That's 2300% return per year!!! Sign up right now.




Where? Where?


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## wayneL (14 April 2015)

Seriously folks....

Ever since I've been back to sweating for a living, I've been using covered calls over my bottom drawer stuff as an "extract some cash from the blinkin' dogs" strategy.

Good for a few percent per year... a bit more if I'm in the zone.

But 3% (or more) cash per month? =>


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## cynic (14 April 2015)

wayneL said:


> Seriously folks....
> 
> Ever since I've been back to sweating for a living, I've been using covered calls over my bottom drawer stuff as an "extract some cash from the blinkin' dogs" strategy.
> 
> ...




Does your bottom's drawers get called away often?

(Whilst I'm sure that those horsey clients of yours keep you fit, I'd still hate to see you naked!)


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## wayneL (14 April 2015)

cynic said:


> Does your bottom's drawers get called away often?
> 
> (Whilst I'm sure that those horsey clients of yours keep you fit, I'd still hate to see you naked!)




Apocalypse Never! I draw first.

Don't want a capital gains tax event so take the loss on the short call before my counterparty's financial imperative kicks in. 

It happens...... 'cept when I'm in the zone.


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## cynic (14 April 2015)

cynic said:


> At the moment I can get you 300-400% returns over 6 months*
> 
> I was going to charge a special rate of $6k for the first 100 takers, but since you're a mate, I'm willing to offer you a VIP ticket at the bargain basement wholesale discount price of only $10,995 in two easy to pay instalments.(Please don't tell anyone else though - I don't want them to think that I'm getting soft!)
> 
> *contingent on the DAX not dropping below it's current all time record high prior to September expiry



By now some of you may have heard complaints from last month's seminar attendees! 

Those that were forced to accept a 25% loss (on account of a margin call) earlier today only have themselves to blame! 

They simply didn't follow my instructions! 

If they'd signed on for the additional modules, as per my recommendations, they'd have learnt how to absolve all losses in the nearest available dark pool!

It really is their own fault and no reflection, whatsoever, on the quality of my educational material! 

I'm simply not to blame for the failings of such stubborn students!

The myriads of glowing testimonials (courtesy of my sock drawer) cannot all be wrong! So please pay no mind to those bitter naysayers!


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## cynic (15 April 2015)

After disclosing the existence of further modules in my recent posts, I've been inundated with enquiries regarding the full spectrum of education on offer.

So here's a brief overview of the programme:

Module 1: This module lays the foundation by teaching the participant how to place a trade thereby commencing the transition from non-trader to trader. 

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Transitory Trader" (a.k.a. Certified T. Trader).


Module 2: This module builds upon the foundations laid in the prior module via intensified educational content and training.

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Intensity Transitory Trader" (a.k.a. Certified I.T. Trader).


Module 3: This module further builds upon the foundations laid in the prior modules by heightening the intensity of the educational content and training.

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Heightened Intensity Transitory Trader" (a.k.a. Certified H.I.T. Trader).


Module 4: This module further builds upon the foundations laid in the prior modules by sharply heightening the intensity of the educational content and training.

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Sharply Heightened Intensity Transitory Trader" (a.k.a. Certified S.H.I.T. Trader).


(But wait!! There's more!!)

Two post graduate training annexes are also available for the more exceptional students:

Module 4a: This module teaches methods for application of the eductaion and training to a rising market (a.k.a. a Bull market).

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Bull Sharply Heightened Intensity Transitory Trader" (a.k.a. Certified Bull S.H.I.T. Trader).


Module 4b: This module teaches methods for application of the education and training to a falling market (a.k.a. a Bear market).

The course candidate is then issued a certificate of completion and is thereafter deemed to be a "Certified Bear Sharply Heightened Intensity Transitory Trader" (a.k.a. Certified Bear S.H.I.T. Trader).


Please note that, as at the date of this posting, many have completed 5 of the above modules, however, nobody has completed all 6.

Drawing from decades of experience, the educator (i.e. cynic), is of the firm opinion that this could not possibly have anything to do with the easily affordable (5 figure) tuition fees and is, therefore, solely attributable to the thoroughness of the invaluable course content being so incredibly overwhelming that no person on Earth could possibly Bear all of the Bull S.H.I.T.

In the unlikely event that somebody completes all 6 modules, he/she/it (irrespective of planet of origin) will be eligible for certification for the complete education programme and therefore may be declared to be completely certifiable.

Oh! 

I almost forgot!! 

There are just a few places remaining for the upcoming webinar (an introductory module), so it's not too late to get on board! 

But please hurry!!! These places simply won't last and I'd hate for you to miss this "once in a lifetime" wealth transference opportunity!

P.S. What was that? You're still awaiting my AFSL number? Hasn't my P.A. emailed it to you yet?
Not to worry! Just use some of your own initiative by randomly Googling a few finance companies and selecting the AFSL number that most pleases you (after all, that was what I instructed my P.A. to do in the first place)!


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## galumay (16 April 2015)

Dear Sir,

Since signing up to the Limited Edition Fully Professional Market Winning Infalibility Package and forwarding $50,000 to your account in the Bahamas, I am yet to recieve any of the course material.

Could you please look into this for me?

Regards, Mr Investor


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## mazzatelli (1 May 2015)

It's with this attitude no wonder you naysayers don't make any money.

My mentor is on hand to answer any questions I have and extremely professional. I have been renting shares which has replaced my income to allow me to enjoy important things in life. I personally believe it has been a small fee to pay for financial freedom.

Takes 30 minutes to put on one trade and then I go out and have fun. Just because you can't do it doesn't mean it doesn't work.


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## hhse (1 May 2015)

mazzatelli said:


> It's with this attitude no wonder you naysayers don't make any money.
> 
> My mentor is on hand to answer any questions I have and extremely professional. I have been renting shares which has replaced my income to allow me to enjoy important things in life. I personally believe it has been a small fee to pay for financial freedom.
> 
> Takes 30 minutes to put on one trade and then I go out and have fun. Just because you can't do it doesn't mean it doesn't work.




There is nothing wrong with the strategy as long as you understand how it's suppose to be used and not the only strategy in your arsenal. People were poking fun of the fact that the strategy is misrepresented as the be all, end all.


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## mazzatelli (2 May 2015)

hhse said:


> There is nothing wrong with the strategy as long as you understand how it's suppose to be used and not the only strategy in your arsenal. People were poking fun of the fact that the strategy is misrepresented as the be all, end all.




...but 3% per month is entirely viable. My mentor does this all the time, if not more


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## galumay (2 May 2015)

mazzatelli said:


> ...but 3% per month is entirely viable. My mentor does this all the time, if not more




Damn, if I hadnt put all my life savings into Cynic's marvellous system I would have happily given you my money. Especially when its proven with the reference to your mentor "doing it all the time, if not more"

That to me is the holy grail of get rich quick schemes, many offer great returns, not many can deliver great returns more than all the time! 

In fact I think I might ask Cynic for my money back, this is just too good to be true.


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## DeepState (2 May 2015)

Cynic, are you Mazzatelli's mentor?


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## hhse (2 May 2015)

mazzatelli said:


> ...but 3% per month is entirely viable. My mentor does this all the time, if not more




If you haven't already realised, selling covered calls/naked puts is a neutral to bullish trade. You make money in various ways - underlying goes up/goes side ways, volatility collapses and time decays . When markets corrects/crash, underlying (usually correlated to market) will go down, volatility will expand and you will find that you are holding onto a losing leveraged position longer than you have to.

However, for those who realise this, they would tend to have an overall "bearish" portfolio strategy and are more strategic in their entry points when selling premium. They are also utilising a small fraction of their available capital at any given time. This is the part that mass media/seminars leave out and forget to teach in detail.

Having said that, good on you, you are still ahead of those who purely hold stock out right.


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## galumay (2 May 2015)

hhse said:


> Having said that, good on you, you are still ahead of those who purely hold stock out right.




He is ahead of anyone on this universe, 3% per month, more than all the time is an infinite return! 3% per month would make him the best in the world if he could do that all the time, let alone more than all the time!!

(this thread is a 'tongue in cheek' one, probably best not treating it as a serious discussion!)


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## wayneL (2 May 2015)

Dudes!

3% is for amateurs and retirees.  

With my course I will teach how to trade biotechs for 12-15% per month with zero risk


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## mazzatelli (2 May 2015)

hhse said:


> If you haven't already realised, selling covered calls/naked puts is a neutral to bullish trade. You make money in various ways - underlying goes up/goes side ways, volatility collapses and time decays . When markets corrects/crash, underlying (usually correlated to market) will go down, volatility will expand and you will find that you are holding onto a losing leveraged position longer than you have to.
> 
> However, for those who realise this, they would tend to have an overall "bearish" portfolio strategy and are more strategic in their entry points when selling premium. They are also utilising a small fraction of their available capital at any given time. This is the part that mass media/seminars leave out and forget to teach in detail.
> 
> Having said that, good on you, you are still ahead of those who purely hold stock out right.




There is no need to look at volatility. With the correct strike selection out of the money, after that it is all down to your discipline and trader psychology to manage the trade. The problem is most people don't possess this and so a mentor really helps in this case.


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## galumay (2 May 2015)

wayneL said:


> Dudes!
> 
> 3% is for amateurs and retirees.
> 
> With my course I will teach how to trade biotechs for 12-15% per month with zero risk




Thats all very well, but can you teach me how to do it more than all the time??

Mazzatelli has gazumped you I am afraid! he da man.


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## DeepState (2 May 2015)

mazzatelli said:


> There is no need to look at volatility. With the correct strike selection out of the money, after that it is all down to your discipline and trader psychology to manage the trade. The problem is most people don't possess this and so a mentor really helps in this case.




So... the price received for the option doesn't matter (no need to look at it).  Just pick the 'correct strike' and run with it.  

Interesting.  How do you and/or your mentor go about the important business of picking the correct strike in 30 mins or less?


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## mazzatelli (2 May 2015)

DeepState said:


> So... the price received for the option doesn't matter (no need to look at it).  Just pick the 'correct strike' and run with it.
> 
> Interesting.  How do you and/or your mentor go about the important business of picking the correct strike in 30 mins or less?




Of course it matters, it tells me how much premium/rent I get


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## DeepState (2 May 2015)

mazzatelli said:


> Of course it matters, it tells me how much premium/rent I get




But there is no need to look at volatility?

...how did you select your strikes again?


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## mazzatelli (2 May 2015)

DeepState said:


> But there is no need to look at volatility?
> 
> ...how did you select your strikes again?




We use state of the art Bollinger Bands


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## DeepState (2 May 2015)

mazzatelli said:


> We use state of the art Bollinger Bands




State of the Art!  Pretty special. 

1. What makes these bands SOTA vs Bolli Classic?

2. How do rents and SOTA Bolli bands come together over a space of 30 mins to place a trade? Ignoring volatility, of course.

Wait a minute...don't Bolli bands use volatility? Or has the SOTA variety trancended that?

Any one had a look at, say, ASX 200 accum vs XBW over the last 10 yrs, after allowance for brokerage/spread on the options bit? ....


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## mazzatelli (3 May 2015)

lol I'm getting tired of carrying on the joke, if state of the art Bollinger Bands didn't awaken you, I don't know what will.

I amused the three you continue to entertain me. Wayne was always too wily .


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## galumay (3 May 2015)

I think we just got played....& pwned, DS. 

Well played, Mazzatelli!


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## DeepState (3 May 2015)

galumay said:


> I think we just got played....& pwned, DS.
> 
> Well played, Mazzatelli!




Well....

+ XBW outperformed ASX by 1% per annum over the last ten years.  After expenses and spreads, that would be close to flat.  Claims of vast excess performance are not credible.
+ 3% per month is clearly ridiculous.
+ SOTA Bolli bands are around.  There are many very advanced ways to calculate volatility.  To imagine that the mention of SOTA with Bolli bands is a dead giveaway imagines that there are no other ways to calculate vol than via the standard Bolli formulation.  The joke is poorly played, actually, because there are.  It is one of those jokes that are intended to be incredulous but, in an oversight, are actually true.
+ Saying that they don't use volatility and yet use Bolli and use option premia highlights incompetence.  I had a voodoo witch doctor photo ready to go.
+ Saying they care about 'rent' but not vol displays ineptitude on option pricing and mechanics.
+ The tone portrayed was clearly one of some naivety and inexperience making quite ridiculous claims.

My working hypothesis was this was that this was another trumped up claim based on voodoo that was taken quite seriously by the poster despite a clear demonstration that they had no real idea how options are priced or worked.  If this is to be taken as a joke immediately....

Perhaps this highlights something when, in this context, it can be taken somewhat credibly as someone who actually believed their own voodoo despite obvious facts and inconsistencies.  If this has been the outcome of my willing suspension of disbelief, I am waiting for the gazump from a lot more, a small number being truly world class. M stopped at less than a handful of exchanges.  Some others seem to be going into 4 figures.  Please declare yourself...


Nicely done, M.  This could have been taken to a very high level if played with finesse and craftwork which accurately knew how options worked and used this knowledge more deeply. There was a great deal more potential if so. Nonetheless, it's a strong start.  It has been entertaining from this end too.


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## DeepState (3 May 2015)

DeepState said:


> It has been entertaining from this end too.




Cynic remains the only true path to financial freedom.


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## mazzatelli (3 May 2015)

DeepState said:


> My working hypothesis was this was that this was another trumped up claim based on voodoo that was taken quite seriously by the poster despite a clear demonstration that they had no real idea how options are priced or worked.  If this is to be taken as a joke immediately....
> 
> Perhaps this highlights something when, in this context, it can be taken somewhat credibly as someone who actually believed their own voodoo despite obvious facts and inconsistencies.  If this has been the outcome of my willing suspension of disbelief, I am waiting for the gazump from a lot more, a small number being truly world class. M stopped at less than a handful of exchanges.  Some others seem to be going into 4 figures.  Please declare yourself...
> 
> ...




The way covered call spruiker threads usually pan out is claims are made, then a user with a low post count claiming they are a student usually enters the fray proclaiming that their educator not only is talented and the real deal, but also a nice personable guy as well. They also usually reveal they've only been paper trading &/or only live a few months and see no reason why it won't work live.

That or have they gone sophisticated - like register with ASF since 2009, make nearly 600 posts on volatility and derivatives, disappear for two years and come back claiming 3% covered calls are possible. Just maybe.....

On another note, I've never seen Bollinger bands used to price vol for ops on any trading desk. I've seen incorporating stochastic vol &/or local vol to overcome the constant drift assumptions in GBM, so what is this advanced Bolli forumla you speak of?


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## DeepState (3 May 2015)

mazzatelli said:


> 1. The way covered call spruiker threads usually pan out is claims are made, then a user with a low post count claiming they are a student usually enters the fray proclaiming that their educator not only is talented and the real deal, but also a nice personable guy as well. They also usually reveal they've only been paper trading &/or only live a few months and see no reason why it won't work live.
> 
> 2. That or have they gone sophisticated - like register with ASF since 2009, make nearly 600 posts on volatility and derivatives, disappear for two years and come back claiming 3% covered calls are possible. Just maybe.....
> 
> 3. On another note, I've never seen Bollinger bands used to price vol for ops on any trading desk. I've seen incorporating stochastic vol &/or local vol to overcome the constant drift assumptions in GBM, so what is this advanced Bolli forumla you speak of?




1. Aye to that.

2. Wasn't interested enough to check your post history at the time.  WayneL clearly had the benefit of experience from your prior posts.  Nice of you to come back with some humour to inject.

3. I've never seen Bolli used to price options vol either.  However, the thread you created for fun made mention of the use of Bolli to set strikes, without caring about option vol.  Bolli can clearly be used for short term price forecasting of underlying.  If you had the perfect system, you'd know the exact path of security prices through to the expiration of the option.  Hence, with that piece of voodoo, you can set strikes without knowledge of option implied vol (for the most part).  Hence my interest in the voodoo.  In dream land, all this is actually within the laws of physics, and is particularly interesting if your prediction ability is truly stunning.  I was curious for the way in which the voodoo and 30 mins of trading intersected to produce a strike selection (and wondering why this question was avoided twice...because that's the truly fun bit I was waiting to open up and view...for my entertainment) and also wondering what you actually were going to claim for the other 29.9 minutes between point and click. Oh the potential!!

Bolli is essentially a range informed by vol around some notion of a kernel.  The kernel is usually taken as being some sort of MA for the classic case.  The vol is usually estimated straight up over a specified time period (usually short term).  Nothing prevents SOTA Bolli from determining a different kernel to some MA.  All sorts of filters are possible.  Similarly, volatility 101 is straight up sample std devn over a fixed window.  Who says that can't be filtered, weighted, ... as is done all the time in risk management estimation.  Nothing says that these kernels of level or vol need to incorporate only the time series under investigation either.  Any form of central tendency estimation and error band is essentially a sub-class of Bolli.  Some of them are truly state of the art, relaxing the fixed drift and independent, yet constant, idiosyncratic innovation assumptions embedded in GBM.  The chances of this emerging were basically zero from thread content revealed...so my interest in pursuing the line of questioning was partly to see how ridiculous the line of reasoning became.  Sadly, my questions in mirth were wasted on a gambit which was also concocted in mirth.  I was hoping you were a believer...and willing to suspend my disbelief in that hope.  

However, on the upside and hoping against experience, there was a non-zero chance that your 'mentor' actually might have known his stuff and that I could learn something after all. 

Ah well, this has been fun anyway.  What are you actually up to nowadays?


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## cynic (3 May 2015)

DeepState said:


> Cynic, are you Mazzatelli's mentor?




I was quite startled when I saw SQ's post. In fact the contents were so alarming that I called a snap audit on my underwear drawer.

Happily, I was thoroughly relieved to find (after checking, rechecking and checking again)  that all my socks were present and accounted for. So I can confidently state that none of my former graduates have audaciously set up business on their own.

On a sadder note, this does mean that there's a new sock puppet in town competing for market share!

However, there's only room for one cynic in this business and you may all rest assured that when the sun comes down I'll be the last cynic still standing!


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## cynic (3 May 2015)

galumay said:


> Dear Sir,
> 
> Since signing up to the Limited Edition Fully Professional Market Winning Infalibility Package and forwarding $50,000 to your account in the Bahamas, I am yet to recieve any of the course material.
> 
> ...




Dear Mr Investor,

I direct your attention to the undermentioned paragraph, which may (or may not)  be found on  page 302 of the online client agreement document:

"In order to keep postage and handling costs down to the highly affordable low price of $19,995.95, a stamped, self-addressed envelope is also required."

Unfortunately you seem to have overlooked this essential detail when mailing your cheque.


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## cynic (3 May 2015)

galumay said:


> Damn, if I hadnt put all my life savings into Cynic's marvellous system I would have happily given you my money. Especially when its proven with the reference to your mentor "doing it all the time, if not more"
> 
> That to me is the holy grail of get rich quick schemes, many offer great returns, not many can deliver great returns more than all the time!
> 
> In fact I think I might ask Cynic for my money back, this is just too good to be true.



Well, have I got some news for you!!

Yes I've got good news, some even better news and just a teency weency tiny little bit of microscopically bad news, but then there's some fantastic news to follow!

Firstly, the good news! Your money is now perfectly safe in my offshore accounts.

Now some even better news. Your investment was 100% covered by our 12 month customer satisfaction guarantee. That's right! If not completely satisfied, after 12 months, you'll be entitled to claim a full refund!!

Now that teency weency tiny little bit of microscopically bad news - the company to whom we outsource all operational functions (i.e. marketing, administration, refund processing etc.) has long since (just this past fortnight) been liquidated.

But there's no need to panic because the fantastic news is that a brand new company has just been established offering  the same fantastic products from the same virtual office operated by the same nefarious personnel.
As a brand new company the long standing reputation remains completely untarnished and is free from the burden of any past liabilities (particularly those arising pursuant to the dishonoured refund guarantees of my predecessor).

But wait! There's more!

Unlike my predecessor , a ridgy didge, true blue, fair dinkum 200% customer satisfaction guarantee is now offered!!!

Yes! You read correctly!! 200% of your tuition investment will be fully refunded, if, after 12 months, you're not completely satisfied*. (Where else can you find an investment offering a guaranteed 100% annual profit?!)

*Fees and charges apply. Refer to the relevant sub-clauses in pages 5,104 and 203 of the (light reading) 356 page online customer agreement document**

**Please note that all online documentation is subject to change, without  notice, and at the sole discretion of Cynicshire Throwsaway Impropriety Unlimited.


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## cynic (3 May 2015)

mazzatelli said:


> ...On another note, I've never seen Bollinger bands used to price vol for ops on any trading desk. I've seen incorporating stochastic vol &/or local vol to overcome the constant drift assumptions in GBM, so what is this advanced Bolli forumla you speak of?




+1 

I've never used them for that purpose on my trading desk either.

Mendacious corn crisps (fibber nachos) are far better suited to that particular aspect of analysis!


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## cynic (3 May 2015)

cynic said:


> I was quite startled when I saw SQ's post....




Apologies Mazza and SQ.

That line was supposed to read "I was quite startled when I saw Mazza's post.."

(It's been quite a busy week here at Cynicshire Throwsaway.)


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## mazzatelli (19 May 2015)

DeepState said:


> Bolli is essentially a range informed by vol around some notion of a kernel.  The kernel is usually taken as being some sort of MA for the classic case.  The vol is usually estimated straight up over a specified time period (usually short term).  Nothing prevents SOTA Bolli from determining a different kernel to some MA.  All sorts of filters are possible.  Similarly, volatility 101 is straight up sample std devn over a fixed window.  Who says that can't be filtered, weighted, ... as is done all the time in risk management estimation.  Nothing says that these kernels of level or vol need to incorporate only the time series under investigation either.  Any form of central tendency estimation and error band is essentially a sub-class of Bolli.  Some of them are truly state of the art, relaxing the fixed drift and independent, yet constant, idiosyncratic innovation assumptions embedded in GBM.  The chances of this emerging were basically zero from thread content revealed...so my interest in pursuing the line of questioning was partly to see how ridiculous the line of reasoning became.  Sadly, my questions in mirth were wasted on a gambit which was also concocted in mirth.  I was hoping you were a believer...and willing to suspend my disbelief in that hope.




Tbh I didn't put much thought into the troll, just mentioned Bolli since most confuse asset vol with Black Scholes vol.


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## cynic (4 October 2015)

I just noticed a new thread with a single digit poster enquiring about yet another Covered Call educator. Have they no shame?

How dare they encroach on my territory and that of my fellow dream merchants!


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