Options and War | Aussie Stock Forums

Just some lazy monday lunchtime musings… My client has had major surgery and obviously can’t do her appointment today, so sitting here at Bells Rapids, contemplating where I am going to put the nuclear fallout shelter on the property I’ve just bought, plus other tangental thoughts.

it struck me that running an options portfolio is a little bit like running a war.

There are those cliches regarding the “fog of war” and “the first casualty of war is truth”.

Is there any more accurate assessment of the financial markets and in particular, the options thereof, them being nonlinear in their pricing characteristics and subject to the level of fear which applies to any moment in time.

Hedging and exotic strategies often reminds me of mutually assured destruction with peripheral play it perhaps living or dying according to the actions of the whales… And sideing up with the wrong side could mean your demise.

(LTCM anyone)

I mean, who would want to be Poland right now?

Perhaps being Tahiti, though no real prospect of catastrophe or eminent magnificent wealth might be the Goldilocks position.

Survival