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To: BGR who wrote (88621)1/12/1999 12:38:00 AM
From: On the QT  Read Replies (1) | Respond to of 176387
 
Hi Apartim*,

OT-OT

BSF is undoubtedly the bible for evaluating options.

As you probably know Ito indirectly contributed to the Black-Scholes. B-S incorporated this process called Ito's lemma, an adjunct or auxiliary proposition temporally accepted as true to demonstrate another which in turn may or may not be true but nevertheless accepted as such ( until proven other wise). Many times we can back demonstrate and accept the auxiliary as true as a result of the workable form of the conclusions. Which of course is not the intent of Black-Scholes but nevertheless most gratifying to me.

Apartim, it seems as long as I can remember I been dealing with what if, then if so, can we etc. It has taken me to many a blind alley, but every once in a while it opened doors that I doubt I would have even been aware of and good things resulted. Even in failure I knew the way back and there was usually the knowing of at least where not to go.

As you know options are not set up by Black-Scholes Formula, they are set by the Market.

We are dealing with supply and demand both in equities and in options and in separate pools (?)

Perhaps there is particular way of making comparison between the two,that may produce better ROI.

I have been reasonably successful in furthering the tried and true with one, equities, but totally inexperienced in the use of the other,options.

Naturally if we can improve on conventional wisdom on one, why not the other?

First thing I have to do is learn what the conventional wisdom is regarding the best way to play the options game. Got a lot of catch up work to do.

Regards,

QT

Wish I were your age again,with your gifts, no question I would be working around the clock getting it done and moving on up. On second thought maybe I would pick more daisies and get less A's on my report card and look for Nadine Stair's spirit!

*(note the respect, I am a man of my word:)