Jim Leitner on Creating a Macro Edge, Trading Options and Carry Trades
Macro Hive Conversations With Bilal Hafeez
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The Advantages of Digital Options
The bank who sells you an option does do their gamma hedging and hopefully ends up losing less than they were paid for the option. But in a sense, you don't really care. You just compare. What is that price? What is that probability? The probability you believe in ought to have. And it kind of puts you on the same plane with the guy who sells you the option because that person is going to make their money in a very different way from you.
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