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That DB/rentech basket option is a tax avoidance scheme. It has nothing to do options pricing and concepts like delta, gamma, etc.
by ciamac 6y ago
That DB/rentech basket option is a tax avoidance scheme. It has nothing to do options pricing and concepts like delta, gamma, etc.
- fractionalhare 6y agoYeah, yeah. That controversy has been litigated on HN a dozen times already, I'm not going to rehash it. Do you dispute my primary point here? If so, why? (Also, even if I agree it was purely intended for tax avoidance, I don't understand why you think that would obviate having to understand how the options work intimately well).
- abhinav2019 6y agoI don't really think you can categorize that they worked well as these companies are market maker. This is all the way more evident in 9 out 10 times they were profitable. It seems more as that options were 9X strike.