Comments on: From One Amateur… http://legacydaily.com/2009/01/from-one-amateur/?utm_source=rss&utm_medium=rss&utm_campaign=from-one-amateur thoughts, lessons, observations, and experiences from a life's journey Wed, 25 Jan 2012 01:55:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: legacy daily http://legacydaily.com/2009/01/from-one-amateur/#comment-269 legacy daily Thu, 22 Jan 2009 02:30:09 +0000 http://legacydaily.com/?p=190#comment-269 Sam - Thanks for stopping by. Your answer brought forward too many thoughts. I'll need to dedicate a post to the topic. Sam – Thanks for stopping by. Your answer brought forward too many thoughts. I’ll need to dedicate a post to the topic.

]]> By: Sam http://legacydaily.com/2009/01/from-one-amateur/#comment-265 Sam Wed, 21 Jan 2009 20:46:03 +0000 http://legacydaily.com/?p=190#comment-265 As ridiculous as this sounds I actually struggled with this too , but in really thinking about it we have no way of knowing what the intention of the other side of our trade is. Some of those contracts on the other side could be going against you for pure speculation, some could be a hedge to another position the party has or maybe some could be a termination of a current position. We really have no way of knowing. Think about a guy making a market in options. You want to buy some calls; well this guy has too much long call exposure so he decides he wants to sell you those calls to offset some of his long deltas. He may lose on the trade but it was to offset some of the other risks in his portfolio. His overall position may still be profitable. Maybe I am rationalizing, but to me morality is a non-issue in the markets because we do not know and have no way of knowing the intentions of the other sides of our trades. As ridiculous as this sounds I actually struggled with this too , but in really thinking about it we have no way of knowing what the intention of the other side of our trade is. Some of those contracts on the other side could be going against you for pure speculation, some could be a hedge to another position the party has or maybe some could be a termination of a current position. We really have no way of knowing.

Think about a guy making a market in options. You want to buy some calls; well this guy has too much long call exposure so he decides he wants to sell you those calls to offset some of his long deltas. He may lose on the trade but it was to offset some of the other risks in his portfolio. His overall position may still be profitable.

Maybe I am rationalizing, but to me morality is a non-issue in the markets because we do not know and have no way of knowing the intentions of the other sides of our trades.

]]> By: legacy daily http://legacydaily.com/2009/01/from-one-amateur/#comment-251 legacy daily Sat, 17 Jan 2009 17:10:13 +0000 http://legacydaily.com/?p=190#comment-251 Jeff - One question I have not settled yet is about morality of taking part in a zero sum game where my gain is another's loss. I am limiting myself to investing in the meantime. Any thoughts? Jeff – One question I have not settled yet is about morality of taking part in a zero sum game where my gain is another’s loss. I am limiting myself to investing in the meantime. Any thoughts?

]]> By: jeff watson http://legacydaily.com/2009/01/from-one-amateur/#comment-250 jeff watson Sat, 17 Jan 2009 05:26:59 +0000 http://legacydaily.com/?p=190#comment-250 The market can go up, it can go down, but as long as man has opinions, one can be assured that it will move. Jeff The market can go up, it can go down, but as long as man has opinions, one can be assured that it will move.

Jeff

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