<t>Well yeah... It's getting confusing what you consider "Short" with Theta isn't it ?Buying an options is always "Short" theta of course, in that you lose money as the underlying [TIME] increases. However in our case we are talking about "Discrete hedging" [from the previous few posts, or at least ...

<t>QuoteOriginally posted by: tosh137Another related question.Isn't the way we think a complete consequence of what we already know? (1)(This is vaguely related to what Penrose says in TENM)Emmanuel: This is probably true. We wouldn't ask questions that have no meaning to us, hence your proposition....

HA HA HA !!! It is well known that scientists don't really mix up with babes very much do they ? Or the ones they mix up with don't live on this continent to be more exact I can suggest a Wilmott Dinner in South East Asia though, there it seems to work amazingly enough !

<t>>there is no proof that the world will ever stop giving, or that more than half of its giving will ever be in the past Actually concerning oil, you could probably consider that the maximum amount of oil is the current mass of the planet itself, that gives you an upper boundary for a start.As a ma...

<t>Reading your comments again, it is funny that I found in my uni years, that mathematicians are (to some extent) unwilling to try and translate their [VERY GREAT] abilities in physical, or rather NATURAL language some of the principles that appear very easy to apply indeed. They sometimes remain e...

Now this is getting interresting ! However I feel that we have deviated from the original question to which my answer is:"We make the dollars that the earth is willing to give, or that other people are not willing to fight for (e.g. hedgers)"Simple isn't it ?

Ruso,Digital options ? You should have said that before ! I don't have my notes with me but I am assuming you won't obtain closed formed fomulas for digitals, as they are exotics. I'll check tonight but I don't think so. Note that the Vegas I gave are only valid for Vanilla !

<t>I agree very much with Joe response:>To the original question: "Why is nature assumed to be mathematical?">>It is not. Artists approach nature differently, trying to extract beauty and truth from her. Similarly, great belief systems attribute complex >symbol systems to her. Math is simply a vecto...

<t>There is no secret, as Lavouasier said:"Rien ne se perd, rien ne se créer, tout se transforme", meaning "Nothing is lost nothing is created, everything is transformed".The only problem is that later on was discovered the 3rd principle of thermodynamics, which can be summarized as dQ/T>0. This mea...

<t>The cost I am refering to are not measurable in actual dollar term, however if you measure it in W (Watts, or even J - Joule), then you will find that effectively the planet is actually losing some Watts, when deprived from non renewable sources of energy, the only thing is that it's not actually...

Well that's probably true, as a matter of fact I have done any box. In my world there are stringent margin requirements anyway, so even if I pocket the trade credit I wouldn't be able to use it There is also the spread of course !

>so who really is Manu? A trainee part time trader. Actually I work in Telecom

<t>Funnily enough another trade I would suggest (refering to Apine post) would be to sell an ATM straddle on QQQ and buy it against an NDX one (in the correct proportions). Although I didn't look at the actual figures including the dividends (and European exerice type), it seems to me that the optio...

<t>Apine, you are actually raising an interresting argument:you did not list the implied vol of the sep contracts, but without looking my guess is that they are flat to higher than the july (a quick look at impliedvol.com confirms this for qqq)The reality is that NDX, as apposed to QQQ, pays dividen...

<t>QuoteOriginally posted by: mibMan, ManuLondon:OK, let's do it slowly1) ManuLondon: "actually the straddle is a very rough way of playing a long volatility position, because you find yourself long theta,"wrong. An OTM strangle is short theta.Emmanuel: Not when you BUY it ; - ). It is not short the...