Recent comments in /f/wallstreetbets

Holy-Kimoly t1_j9crbiy wrote

If you are going to put together a true "trading" program, that is the way to go to skin the cat correctly. Computer aided drawing on graphs isn't going to cut it, not by a long shot.

For options, you should study up and understand the Black-Schoels model. Best if you can write out the derivation yourself. Then look at the market empirically, where the results in the real world differ from the how the market treats those aspects. Read up on the Greeks, so you can understand them. Although depending on your approach certain Greeks may be totally unimportant to you. Understanding that is a lot less difficult than putting together a trading program.

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Hairy-Thought6679 OP t1_j9cnc2c wrote

And we have a global population’s worth of variables that can affect anything in any way. I’m actually pretty proficient with math it always came naturally for me I was lucky I guess. Or it’s ADHD tendencies making their play who knows. Definitely a valid point there with non-normal

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Holy-Kimoly t1_j9cmeu2 wrote

Probably books on Riemannian geometry, differential geometry, and complex geometry. You might just want to look at the math textbooks for the PhD program that James Simons went through, that is probably a good starting point.

The stock market isn't normally distributed, so using normal distribution curves for your IV is problematic.

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KutteKiZindagi t1_j9cj6fa wrote

>There are only two reasons that come to my mind why stock market ain't reacting.

you keep forgetting that the market is crushing retail. Fed said this was literally the #1 goal to suck out liquidity and quickly end inflation. To rephrase fed governor "there is not enough pain on the stock market to reduce inflation"

Stock market is rallying because 90% of WSB/retail, their grandma and their dogs is on shorts. Markets will rally days, weeks, months, years until all the shorts are killed. Absolutely positively.

Long dated puts wont cut it. The market could rally years. The 2008 crash started in 2003. Retail were majorly in puts in 2004/2005. Burry got in at 2005. Markets rallied for 3 years after that.

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