@gnoble79 side of this trade and the bubble can keep going for another couple years or so? Then when it crashes, I"m reading smart folks talking about the Govt. socializing the Mkt. because so many will rely on it for retirement?
@gnoble79 observing, but I follow a lot of you smart finance guys and you are all calling it a bubble, which anecdotally says this thing aint done yet? The white house, the FED, they're gonna run this fucker to the moon! And, I'm in cash BTW!!! Just feel like I might be on the (contd)
@BergMilton I read your report and looked at your exposure on last page. Just curious, with 31 % Abs. Exposure, does that imply that you are ~70% in cash? Thanks. BTW just signed up for your retail product, Edge!
@velesxbt That first video is Oppenheim of Oppenheim and Shaeffer, authors of the considered Bible on "Discrete-time Signal Processing"?
Has nothing to do with Shannon Entropy and Channel Capacity?
Let's do the math $MTPLF
Each "unit" is 1 shares of stock and .66. 1 year warrant. At 80 vol that warrant is worth 40% of spot.
The buyer "overpays" for the 1 share by 5% and is compensated for that by getting .66 free warrants worth of .66*40=26.4%
That means the unit which is sold at a 5% premium is worth 21.4% more than they got in proceeds. In other words the unit was sold at a 1- 1/1.214= 17.6% discount
This is a substantially better deal than the atrocious deals done by $IONQ twice, $ONDS twice and $BMNR once. It's still pretty damn expensive but it's not awful.
I expect the buyer will sell his shares, and monetize the warrants by selling delta and vol. when possible.
@texasrunnerDFW Did you see the interview (Andrew Sorkin)? When asked about his portfolio managers, He said if the markets are open on Fridays, his people will be working on Friday!
@Mike_Taylor1972@alejand50277945@radz_joe@eliant_capital Mike, big fan of yours BTW, just trying to understand, win both ways (sounds like implied straddle)? But (1.5% premium +2% OTM = 3.5% stop loss (roughly)?) sounds like just hedged for meltdown, ie. small loss? But win on meltup! Am I totally misunderstanding your statement?