Have you met anyone with a signifiant capital deployed use it in real markets? I havenāt
what other model do you personally use?
is it then we need to find the most popular models used by people , in large quantity to exploit the premium prices and benefit from it? Because they are basing their decisions on that model which gives us an idea on how they would decide to buy an option ?
Based on your view and the current pricing of options you place trades:
*you can think the market is underpricing volatility
*you can think the market is overpricing volatility
*you may bet the directional bias of the market is over/under priced
*you can even place bets on the directional view that ignores the expected moves
can can essentially create more nuanced trades based on your exact view
There are HFT algos that run to take arbitrage trades based on estimated and actual price deviation. I will disclose that muchā¦
I donāt use greeks. I use price - Bhav Bahgwan Che
to provide what I am trying to arrive at is : I am not the one is trying to hedge or buy insurance using options to let it go to expiry or determine fair value, I am on the side of trading the premiums to solely benefit from their movement , any models for me isnāt that useful just the only thing I wanna know or try to take a trade on is where this price would land next .
and you believe they use b&s?
Iāll sell my 2 bought trade to you for lower price , if you disclose further
I have an opinion now that more than indicators retailers are lagging with their technical knowledge lke by the time something gets in the hand of retailer, the better and competive world has moved on and is ahead by years.
Why would anyone use b&s to estimate fair price and then calculate option greeks on this price?
Option greeks are calculated on the real time market prices.
then those greeks could be way off and irrational , unlike the Greeks. Bahot greek greek greek hogaya aaj k liye
SO it means the market is one giant organism with all might , even ifās it irrational,which it couldnāt be because that is subjective to me , and what market does becomes a verdict right? and the only `way to redemption is to have a view and expect the rest to be resolved on the day at expiry.For trading the premiums I may have to side with the market that is the most popular sentiment till 90% course to expiry , then have a nuaced view even if it means going against the market and expect I am correct because the noise would settle by expiry.
Yes a variation of it.
Because they expect the traded price to converge close to the estimated fair price.
Sorry that offer is not very attractive for me to take.
again, lacking any understanding of what options greeks are
There would be no point in calculating greeks on some estimated market move/price instead of real-time option prices
Their point of view is different from your point of view thats allā¦
the fact that you think greeks are calculated based on someoneās point of view