Weird volatility skew

[wayneL]

Actually, I'd disagree - its more risky, because people don't understand how derivatives work and the underlying principles that requires participants to operate the way they do.

It's an interesting point made by Stuie Johnson. There are the specific risks inherent in the instruments themselves, which of course can be manipulated an limited by the trained, but there is knowledge and/or information risk... playing with something you know SFA about.

 

[nioka]

Nioka

Can you explain precisely how options caused the GFC?

(this should be good) :

We have been through this before. If you dont see my point of view by now then there is no point in me going through it all again.

 

[wayneL]

We have been through this before. If you dont see my point of view by now then there is no point in me going through it all again.

Then I can only conclude that you can't explain how.

 

[nunthewiser]

I,m personally waiting to hear the reasoning also . just as i waited when twiggy blamed the shorters but couldnt explain the continued fall in price once shorting was banned....

Lots of broad statements but with no explainable knowledge attached.

Can i blame that on the shorters and derivative users also?

 

[nioka]

I,m personally waiting to hear the reasoning also . just as i waited when twiggy blamed the shorters but couldnt explain the continued fall in price once shorting was banned....

Lots of broad statements but with no explainable knowledge attached.

Can i blame that on the shorters and derivative users also?

It is all there in discussions on threads about 18months ago. I dont stutter and I get sick of trying to talk to those that dont listen, cant see the wood for the trees and dont think outside the square. I just call a spade a spade as is often quoted here, anyone is free to have their own thoughts and you now know mine. No fees for service, its free advice. Back to actual stock research... see ya later.

 

[wayneL]

Why not just admit that your hypothesis is wrong instead of accusing others of some deficiency because they require evidence of your assertion?

... or you could present some logic... or just link to previous posts if you prefer?

 

[skyQuake]

Recommend "The Quants" for a different point of view into it.

----------------

And back on topic, OP, how are you calculating the vols? Midpoint of bid/ask, and at what time? MM's fool around and dont really come on till 11 so it might just be retail trades.

 

[mazzatelli]

It is all there in discussions on threads about 18months ago.

What, that derivative traders can't short the spot to delta hedge positions? - Thats what you stated, which is grossly misinformed....

@skyQuake
I'm tired of hearing about that d@mn book....
haha

 

[nunthewiser]

It is all there in discussions on threads about 18months ago. I dont stutter and I get sick of trying to talk to those that dont listen, cant see the wood for the trees and dont think outside the square. I just call a spade a spade as is often quoted here, anyone is free to have their own thoughts and you now know mine. No fees for service, its free advice. Back to actual stock research... see ya later.

lol interesting.

thanks for the reasoning behind your deep analasis into the GFC meltdown triggers.