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Interesting, everstrike is a option market that sells a type of option they call an everlasting option. They say it was co-invented by non other than SBF: https
by KrugerDunnings 3y ago
Interesting, everstrike is a option market that sells a type of option they call an everlasting option. They say it was co-invented by non other than SBF: https://www.paradigm.xyz/2021/05/everlasting-options https://www.paradigm.xyz/2021/05/everlasting-options
- yieldcrv 3y agovanilla options (edit: pricing model) were invented by LTCM and they blew up on degenerate bets too looks like it just comes with the predisposition
- 1retep 3y agoI don’t think vanilla options were invented by LTCM. But the pricing model and thereafter the popularity was.
- VagueMag 3y agoVanilla options are hundreds of years old, but Myron Scholes (of the ubiquitous Black-Scholes pricing model) went on to be principal at LTCM.
- anonymoushn 3y agowe need not confuse blowing up one's own portfolio with stealing ten billion dollars
- yieldcrv 3y agowe need not confuse the legitimacy or illegitimacy with the characters involved, since they both mismanaged capital and business
- VagueMag 3y agoFar more money has probably been stolen with the "heads I win, tails you lose" approach -- just put on massive leverage and stick someone else with the bill if it blows up -- than has been stolen by all the Ponzi schemes in history.
- downvotetruth 3y agoYale finance could argue that the https://en.wikipedia.org/wiki/Perpetual_bond https://en.wikipedia.org/wiki/Perpetual_bond has priority with the oldest example being 1624 as the holder has the option to collect coupon payment. Currently, Yale has the opportunity to write up and sell the option on the coupons (back to the water board if they wanted to make it a little less unfeasible of being "perpertual") and turn the original "bond" into a zero coupon "bond"? (more of an annuity given the principal can never be collected - unless doubtfully they were written as callable).