Chael

🤓🤓🤓

[Chael @Chaelelo]

@markovschainsaw @0xfdf @macrocephalopod @DeepDishEnjoyer 1,2,4,5,8

[Chael @Chaelelo]

@macrocephalopod @DeepDishEnjoyer @0xfdf Index rebal is market making

[Chael @Chaelelo]

@DeepDishEnjoyer @dampedspring Kinda true, The biggest ones growing the fastest rn are also the ones that invested the most in compute

[Chael @Chaelelo]

@DeepDishEnjoyer @strictrope That’s the extreme worst case assuming they realised all the gains at the top and none of the losses. Probably not nearly as bad

[Chael @Chaelelo]

@Brandon7921588 @blondesnmoney @cryppimagic They’re locked for different reasons. TSMC is capped for Taiwanese foreign investment laws. SKH not under the same constraint and they could feasibly issue more ADR shares.

[Chael @Chaelelo]

@Brandon7921588 @blondesnmoney @cryppimagic I’m saying you can’t buy shares in Korea, convert to ADR, and sell them at a premium. But you can go the other way. That’s why you should expect a premium.

[Chael @Chaelelo]

@Brandon7921588 @blondesnmoney @cryppimagic But you can’t freely convert shares to the ADR

[Chael @Chaelelo]

@KrisAbdelmessih Not disagreeing with anything you said, just wanted to talk about industry consolidation and how larger firms can bully smallers, both thru more efficient business synergies as well as outbidding on talent

[Chael @Chaelelo]

@KrisAbdelmessih Ofc fully agree on investing, and in general ROC feels sublinear.
Return on labour being superlinear in the MM biz is a bit scary though if the end result is consolidation in like 3-5 players. And this property seems validated recently: fastest growing firms are also the largest

[Chael @Chaelelo]

@AgustinLebron3 @annanay @tcoste110 I don’t understand where they did that. In the morning they sell $4b in rich options deltas, hedge ~$500m in cash. Into the close their expiring options make then net longer $4b, so they sell ~500m stock. How would u execute if u had net negative stock opinion, and saw this arb?

[Chael @Chaelelo]

@annanay @tcoste110 @AgustinLebron3 What about this was manipulation? The original index arb, or the underhedging of new options deltas, or the hedging of expiring options deltas?

[Chael @Chaelelo]

@annanay @AgustinLebron3 If you wanted to put on $1b of some stock position, would you rather execute over several days or all at the close? The more competitors there are doing flow trades, the more this looks like optimal execution for the end flow. Don’t see the issues you’re alluding to

[Tom Schmidt ＞|＜ @tomhschmidt]

"what is the charge? enjoying a hedge? a succulent iranian hedge?"

[Chael @Chaelelo]

@elletwocache @TheStalwart I think u can get a fair bit of success on QR if you first let it read like 10 of ur research notebooks and talk to it about the scientific method. Won’t be amazing but if subsequent ideas are similar enough to previous studies it can be pretty good.

[Chael @Chaelelo]

@AgustinLebron3 @JaredKubin @jared_jensen75 I might be wrong but I thought that even for the biggest firms these limits were only constraining in Asian markets, which results in those markets being less efficient. If retail flow is auto correlated, this net results in them getting worse prices as MMs fade more on their pos

[Chael @Chaelelo]

@AgustinLebron3 @JaredKubin @jared_jensen75 (6) seems like a nonstandard suggestion vs healthy markets? if its non-kyc, position limits wont stop anyone determined. if it is kyc, market abuse is regulated. poslims just limit the ability of well-capitalised/informed traders to express their full opinion -> less efficient

[Chael @Chaelelo]

@salr_nyc @PrometheusCHT This is a very stupid thing to be mad over and happens all the time in lots of political offices for all sorts of religious events. Here’s one in the White House

https://t.co/ubiKAdBIsQ

And here’s one in the pentagon

https://t.co/HpdipQXFyL

[Chael @Chaelelo]

@DeepDishEnjoyer If you’ve spent a couple days thinking about adverse selection or how to find edge, with a couple of traders helping you think clearly, it’s gonna have a small positive effect on return offer at most places. And you only need 1%. Tho it is sad if these are the end demanders here

[Chael @Chaelelo]

@DeepDishEnjoyer Kids doing the maths of “the EV of getting a full time offer is X. If this improves my chances by even 1%, I’m willing to pay X/100” are more than happy to pay 2k

[Chael @Chaelelo]

@DeepDishEnjoyer The best couple firms maybe so but others still like it if you have something to talk about. And it’s still a marginal improvement to chances of return offer given internship. For college students willing to pay this much for final-round questions anyway, this is worth it