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Alice, 30 years ago the Options Exchanges were VERY different than
they are today. They didn't exist. -g- BTW, I have lectured groups of
options professionals at workshops, college courses, professional
groups, etc. And many did chuckle. The fact that the herd will always
believe in some simplistic
scam just makes contrarians more able to pick them
off. And, we can tell them what we're doing and they still don't
believe it. -G- BTW, this idol has clay feet and the potter wants the
clay back. MB BTW, here are a few reasons Black-Scholes, rightly
initialized as BS, doesn't work: 1. The
important inputs are future inputs which nobody knows. That is one
reason all MPT based systems don't
don't work. 2. BS doesn't take into account
discoutinous pricing, which has destroyed more BS players than
anything besides #3. 3. BS cannot deal with inside info and crooks.
4. BS was invented by academics who never make money in the market.
Only one Nobel Prize winner in Economics manages a fund right now,
and it has not been a pretty sight. When I was at Wharton, they tried
an experiment where Penn endowment
money was managed by their brilliant finance
professors. They had to fire them before the endowment fell to where
they couldn't afford to pay the tuition for prime
students like me. -G- John Neff took
over with his more practical approach and eventually
rebuilt one of the great
university endowment funds. Good luck, MB |
