#1
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Derivatives trading and poker
Are there any derivatives strategies that are analagous to poker strategy?
The things the come to my mind are: 1. Play only your best hands - Invest only in instruments you have a high chance of making a return from 2. Win money not pots - Maximize earnings from transactions, don't make tons of transactions Any other ideas? I am asking for interest sake, for an interview I have with a derivatives group tomorrow, as a point of conversation |
#2
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Re: Derivatives trading and poker
I think the fallacies have more in common than the strategies.
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#3
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Re: Derivatives trading and poker
1.)How about deviations from a standard Black-Scholes price is analagous to accounting for implied odds, discounted outs, etc?
2.) The premium paid for short term options due to a higher relative volatility could be compared to the short term luck/volatility of poker, vs the more consistent return after a longer playing period. Both of these are pretty weak, but I tried. Let me know if you end up using them. |
#4
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Re: Derivatives trading and poker
what would the fallacies be?
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#5
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Re: Derivatives trading and poker
thx! I will definitely think about these..
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#6
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Re: Derivatives trading and poker
What derivatives trading firm are you interviewing with?
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