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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (76791)9/7/2007 2:47:48 PM
From: GROUND ZERO™  Read Replies (1) | Respond to of 94695
 
Well, if it works 99% of the time, then it's the greedy 1% pig that will get slaughtered...

GZ



To: Real Man who wrote (76791)9/7/2007 6:02:27 PM
From: saveslivesbyday  Read Replies (1) | Respond to of 94695
 
The delta of stock never changes; the delta of an option does.

The hedging works, until one has to buy back the option and the volatility has inflated the value.

That's the problem, then - complacency and not preparing for the worse case scenario, that is significantly increased volatility?