
Diego Parrilla On High Inflation, Anti-Bubbles and the Problem with Stop Losses
Macro Hive Conversations With Bilal Hafeez
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The Black and Shaw School of Thought
The black andshaw school of thought is effectively atradin volatility. In case, iam going to by a puto n I'm going to delta hedge it, so i have no directional risk. The other way to think about options is different - you run a monte carlo simulation. You run a hundred thousand paths, and the premium represents the expected pay out. It's an implied versus realized fall. And it's a mean reverting game, and it's a great defender.
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