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Fri Feb 07 03:41:46 UTC 2014  <herbijudlestoids>   pastebin!

Fri Feb 07 03:41:37 UTC 2014  <herbijudlestoids>   pastebin it

Fri Feb 07 03:41:16 UTC 2014  <herbijudlestoids>   i own 0.02BTC

Fri Feb 07 03:41:11 UTC 2014  <herbijudlestoids>   sypher_: no

Fri Feb 07 03:41:07 UTC 2014  <herbijudlestoids>   i.e. shorting a $2000 call has the same/similar payoff profile (at settlement) to long $2000 put

Fri Feb 07 03:41:06 UTC 2014  <sypher_>   herbijudlestoids, nubbins`, got an account at gox?

Fri Feb 07 03:40:14 UTC 2014  <herbijudlestoids>   now options have some synthetic equivalency

Fri Feb 07 03:39:23 UTC 2014  <herbijudlestoids>   like i said, depends how far ITM/OTM

Fri Feb 07 03:38:52 UTC 2014  <herbijudlestoids>   for example, if the option is far OTM (e.g. the price of BTCUSD is $1 and the call is for $2000) then the value of the option will consist mostly of vega and theta (which is decaying as time goes on)

Fri Feb 07 03:38:13 UTC 2014  <herbijudlestoids>   depending how far ITM/OTM (in the money or out of the money) the option is depends on what the market price of the option actually consists of

Fri Feb 07 03:37:48 UTC 2014  <herbijudlestoids>   some of the greeks are numeric values that you can simply calculate, like theta, which is the time value of the option.

Fri Feb 07 03:37:33 UTC 2014  <herbijudlestoids>   its also forecasting vega, delta etc

Fri Feb 07 03:37:19 UTC 2014  <herbijudlestoids>   the forecast isnt just for where the price of BTCUSD will be relativeto $2000 in a years time

Fri Feb 07 03:36:58 UTC 2014  <herbijudlestoids>   so the market is implying, forecasting, trying to get the best price for what they think the options are worth

Fri Feb 07 03:36:32 UTC 2014  <herbijudlestoids>   does that make sense? the market price of any given option might be very far away from what your model reckons it should be

Fri Feb 07 03:35:53 UTC 2014  <herbijudlestoids>   the market price of the options "imply" what the market is considering the value of those greeks will be at settlement

Fri Feb 07 03:35:21 UTC 2014  <herbijudlestoids>   lets stick with the example of a JAN 2015 $2000 BTCUSD CALL

Fri Feb 07 03:35:08 UTC 2014  <herbijudlestoids>   now aside from all of this, there is the current market price that the options are worth

Fri Feb 07 03:34:46 UTC 2014  <herbijudlestoids>   there is also some others like lambda and gamma, depending on your model

Fri Feb 07 03:34:28 UTC 2014  <herbijudlestoids>   delta, vega, theta, rho

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