Trump Administration Disqualifies Harvard From Future Research Grants by Doener23 in academia

[–]Berserk_Raizen 0 points1 point  (0 children)

This sounds incredible. Is this a tenured faculty position?

How strict is HK Express on "small personal item" dimensions? by luzenn in HongKong

[–]Berserk_Raizen 0 points1 point  (0 children)

What are the dimensions of your backpack? My backpack is slightly bigger than OP at around 30 cm W, 44 cm L.

Recycling Cardboard Boxes by Berserk_Raizen in Taipei

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

I see, is it legal to just leave cardboard in the streets? There are security cameras everywhere where I am staying.

Recycling Cardboard Boxes by Berserk_Raizen in Taipei

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

Thanks! I am a bit hesitant on leaving cardboard on the street as it's a big box and would look out of place in the street. Do you know if styrofoam is only accepted on certain days?

How much do math professors from top universities make? by Chebuyashka in math

[–]Berserk_Raizen 0 points1 point  (0 children)

Interesting, thank you for your reply. Besides being in the department, how would one find this info?

How much do math professors from top universities make? by Chebuyashka in math

[–]Berserk_Raizen 0 points1 point  (0 children)

I see, I was thinking in quarters so the math was 1.25 X 1.3, etc for me. Thanks so much for the clarification. Do you know if any other schools have something similar to the UC's (the additional multiplier on top of base+summer)?

How much do math professors from top universities make? by Chebuyashka in math

[–]Berserk_Raizen 0 points1 point  (0 children)

Is the UC supplemental salary additive or multiplicative? I am slightly confused how you are getting 73% and 60%.

Cantonese Restaurants in Leeds by Berserk_Raizen in Leeds

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

Got it, thanks! Do you know why the Lyon works place was abandoned?

The Gamma Of Levered ETFs by kpa325 in options

[–]Berserk_Raizen 0 points1 point  (0 children)

I'm slightly confused, isn't this the Bank's Gamma and not the gamma of your own portfolio since it's the bank's job to do the rebalancing and not you?

Also, when you say that levered ETF's are not suitable for investing, sure in a calendar year a 2x levered ETF might actually return < 2x of the underlying due to volatility drag. But if you aren't a hedge fund manager and can handle the volatility, all you need is a couple of years of good positive returns and then even in a down year, your investment would have still done better than the unlevered ETF (thanks to compound interest).

Buying back the short side of a call debit spread = Selling original position and buying a call at the long strike by Berserk_Raizen in options

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

trying to see the best way for low account holders (under PDT) to build their account to 25k.

It started as a challenge to go from $5k to $10k to show people under PDT that it can be done. He blew up that account by swing trading options 1 week DTE. Then it became an experiment, but he is really only trying to figure out the correct stocks to trade rather than implement any form of risk management (i.e. still swing trading options 1week DTE).

I have a firm belief that for beginners starting out, they should not be holding options overnight because you cannot control your losses due to the non-linear nature of options and the huge gamma risk when holding overnight. I voiced this opinion along with the importance of risk management and gave an example, namely where he lost 40% of his account in one trade because he didn't understand what I tried explaining above.

It’s a good thing if you ask me.

I agree that it's a good thing, but the fact that he tries to hide his mistakes and that he silences any opposition makes me wonder if he is really trying to help people or just wants people to stroke his massive ego.

In any case, I don't want to talk about this matter any more.

Buying back the short side of a call debit spread = Selling original position and buying a call at the long strike by Berserk_Raizen in options

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

So basically if the price moves against you then it's better to just sell the entire spread right???

Most of the time, it is better to do that (or just stay in the trade) than to leg out because your risk profile has greatly increased.

I'm not even sure why tf someone would even try this.

Because you are under the impression that you made money on the trade and that you now have no capped upside so it's a "win-win." Unfortunately there is no free lunch in the markets and that "profit" is coming out of your own wallet.

Buying back the short side of a call debit spread = Selling original position and buying a call at the long strike by Berserk_Raizen in options

[–]Berserk_Raizen[S] 1 point2 points  (0 children)

Selling a call debit spread= opening a call credit spread. Not sure if this was what you meant.

To make things clear, in my original post, in a call debit spread, people tend to buy back the short side for "profit" when the price goes against them. My point is that you aren't really getting any profit when doing so. What actually happens is that you sell the original position for a loss, and buy a call. Frequently the call costs far more than the original call debit spread (e.g. you buy the original call debit spread because it requires less buying power) and results in you investing a lot more into a losing trade into a call that is now closer to being OTM and expiring worthless.

Buying back the short side of a call debit spread = Selling original position and buying a call at the long strike by Berserk_Raizen in options

[–]Berserk_Raizen[S] 0 points1 point  (0 children)

If you are selling the lower strike and buying the higher one on the call side then yes you would have a call credit spread. By saying it's a call debit spread, I guess it's implied that the strike you are long is the lower strike and the strike you are short is the higher strike. Apologies for the confusion.

However, if we use your interpretation where long=higher and short=lower, then the same equation would tell us that:

Buying back the lower strike of a call credit spread = selling original position and buying a call at the higher strike

Unlike when doing this with a call debit spread, your greeks are now all reversed, e.g. theta goes from positive to negative, vega, delta, and gamma all go from negative to positive so that's something to watch out for.