How are YOU telling BP to go **** itself?

[KrazyHorse]

I don't know if there's a publicly available vol curve I can reference for you on individual equities...

[Al B. Sure!]

How much different? The house takes 3% of your initial bet on a game in which your variance is approximately the size of your initial bet (roulette). How much was your brokerage fee? How long did you hold BP for? What was the implied vol over that time period?

commission: 0.28% per trade
6.85% 30-day daily historical vol
2.30% daily vol since my initial position

[KrazyHorse]

How long did you hold for? Was that 0.28% once or twice (once to enter once to leave)?

[Al B. Sure!]

Low cost brokers

per transaction. Sorry.

[KrazyHorse]

Also, implied and historical/realized vols are different. They are the same for roulette because roulette results are uncorrelated with the market.

[Al B. Sure!]

I actually only held the main position intra-day. I shorted a few shares just for kicks (held for 4 trading days). The short position would actually increase the total commission % a bit though to 1.1% unfortunately.

[KrazyHorse]

And how long did you hold for?

Let's say one week. Then you got 2.3% * sqrt(5) = 5.14% var and paid 0.56% to the house.

Roulette is 3 times more efficient.

[Al B. Sure!]

KH:

The historical volatility I cited was calculated from closing prices. Intraday volatility was significantly greater. There was an 11.56% price movement on the day I bought and sold my primary position but only a 1.43% gain from the previous day's close.

[Al B. Sure!]

I only held the short position for 4 days. Frankly, that was just for kicks anyway. I was aware my commission cost was going to eat significantly into my return. Just since I was expecting the price to dip where I would buy back in, I figured I mightaswell short a few shares and make some extra dollars in case my expectations were correct (and they were)

[KrazyHorse]

KH:

The historical volatility I cited was calculated from closing prices. Intraday volatility was significantly greater. There was an 11.56% price movement on the day I bought and sold my primary position but only a 1.43% gain from the previous day's close.

You have to use mkt implied vol here, not ****ing realized vol.

[Al B. Sure!]

You have to use mkt implied vol here, not ****ing realized vol.

You calculate it for me then

[KrazyHorse]

Give me the options data for BP and I will.

I'm not allowed to fetch market data from work and use that, you jackass.

[Hauldren Collider]

What is the point of a stock broker if you don't take advice from them?

Why do you need to hire one to trade if they just relay your mouse clicks?

[DaShi]

And so Alpert's entire plan from the get go falls apart.

[KrazyHorse]

What is the point of a stock broker if you don't take advice from them?

Why do you need to hire one to trade if they just relay your mouse clicks?

How exactly is that trade supposed to get done without a broker?

The exchange isn't in the business of operating individual, tiny accounts for everybody who wants to buy 100 shares of BP on a moment's notice.