LogFAQs > #957027422

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TopicStock Topic 32
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08/12/21 5:42:56 PM
#43:


It's SIMILAR but I suspect this strategy would have been punished in all but the most extreme cases of volatility, and that includes stuff like the Chinese EV fad last year. It really shouldn't work. I know you're probably thinking I'm tinfoil hatting but my first job out of college was to help design a machine learning algorithm to game when to buy and sell options based on volatility and a bunch of other factors.

There are plenty of automated algorithms out there and if you think you're getting free money with a pure options play it's pretty unlikely you actually are. If there's no risk you're going to get destroyed like this every time, and if you aren't getting destroyed there's probably more risk to what you're doing than you're aware of and you just happened to pick right.

(Note said work was not for an actual market maker, just a random dude with a ton of money, but he had a lot of data to work off of! I'm sure market makers have that much more to devote to automation based on whatever)

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