Majeed Simaan

Assistant Professor of Finance & Financial Engineering at Stevens Institute of Technology. Practicing martial arts partially, typing #rstats & #texmaker mostly

[Majeed Simaan @simaan84]

Was talking about regulating the financial system earlier.. doubt my students know the song! #regulation #Finance #Banking

[Majeed Simaan @simaan84]

Haven't finished the book yet, but here is another one!

What economists imagine to be rational forecasting would be considered obviously irrational by anyone in the real world who is minimally rational
Roman Frydman (2013) – Rethinking Economics p. 148

[Majeed Simaan @simaan84]

Been reading this gem and came across this quote by Bruce Sterling
"You are much more like your house cat than you are ever going to be like Siri" #financialrisk #RiskManagement #ArtificialIntelligence #economics

[Majeed Simaan @simaan84]

Another quote from the book: "As Taleb emphasised, evolution favors those who survive, and they are not necessarily those who maximise expected value. Perhaps rational economic man dies out because no one would want to mate with him."

[Majeed Simaan @simaan84]

Been reading this gem and came across this quote by Bruce Sterling
"You are much more like your house cat than you are ever going to be like Siri" #financialrisk #RiskManagement #ArtificialIntelligence #economics

[Majeed Simaan @simaan84]

@adababbage @joshua_ulrich Indeed, there are a lot of limitations, especially the ability to stick to an investment policy ex-ante, which undermines whether investors would consistently pursue the same policy, especially after realizing big losses. BRK, on the other hand...

[Majeed Simaan @simaan84]

#btd?

[Joshua Ulrich @joshua_ulrich]

Majeed Simaan @simaan84 discusses risk/benefit of buying the dip--an extension of dollar-cost averaging. You allocate available wealth in 'k' amounts over time, and may go 'all-in' when the dip is > a max-drawdown (20%, 10%, 5%)

Shiny app at https://t.co/WgILHI04LC
#rfinance

[Dale W.R. Rosenthal @dale_rosenthal]

R/Finance 2023: Majeed Simaan @simaan84 on Buy the Dip? - memes about when the dip keeps dipping (or not), builds BTD strategy, play around w/it yourself at https://t.co/bL40TrKFcm #rfinance

[Majeed Simaan @simaan84]

Congratulations Jim!

[Majeed Simaan @simaan84]

https://t.co/dkj1toG951

[Majeed Simaan @simaan84]

@dougboneparth @OfficialCASHTRO Can't beat a coffee maker

[Majeed Simaan @simaan84]

@tylermorganwall Perhaps it's a bad objective function to optimize from the very beginning? Great visuals nonetheless!

[Majeed Simaan @simaan84]

@Cloutonomics @BuzzFeed Here is a snapshot of my #rstats computations

[Majeed Simaan @simaan84]

On Jan 27, @BuzzFeed announced that it be using #chatgpt to help its production. The stock market celebrated such news, and its stock increased by more than 100%. On the same day, I traded a single $BZFD $2 Put 17/2 Buy. As for now, its stock is -40% down since its peak.

[Majeed Simaan @simaan84]

@Cloutonomics @BuzzFeed Indeed, the Black-Scholes model would imply a return of 2240%! given that the stock dropped 40% and how volatile it is

[Majeed Simaan @simaan84]

@Cloutonomics @BuzzFeed I mean that this is a single bet that went in the right direction for the stock. If the put option price were liquid, it would move up in a nonlinear fashion as the stock price drops. Hence, the idea of embedded leverage in options. However, none of that happened!

[Majeed Simaan @simaan84]

@BuzzFeed There is a typo. I meant to say that
"the numbers from a Black-Scholes reality would strongly disagree!"

[Majeed Simaan @simaan84]

@BuzzFeed The common wisdom is that derivatives are forward-looking. However, liquidity is a major handicap when it comes to trading options. Indeed, the current return on my trade is -8.00%. I assume the numbers from a Black-Scholes reality would strongly agree!

[Majeed Simaan @simaan84]

Looking forward to this. Join us this Thu! https://t.co/T3Q80eQofv

[Majeed Simaan @simaan84]

@florianederer @conlon_chris R^2 increased infinitely on the left hand side panel