BetaExoticBets

[NotQuiteRandom]

Well, as I am up 106.29% in 3 days from some basic technical strategies I am impressed with it. I also like BOM and binarybet.com and have done well on both of those.

Looking at their prices they are pretty tight. Might be interesting to do some more detailed stochastic analysis. Let me know if you want to and I will dig up all my exotic options code.

As they are not live we neither know if they are FSA regulated or if they will facilitate GBP betting.

P.S - you never PMd me on either of our last 2 conversations.

 

[riskarb]

I think that these BetaExoticBets guys must either be running a matched book (unlikely as they are new) or operating a dynamic hedging / pricing algorithm.

I say this because some of the binary and time switch bets are cheaper than fair value. Assuming they are smart they must do these cheap bets to balance the book when they need the vega / gamma atc.

This could be the subject of a very interesting study - I am still ranked number 1 on the board. Thank God I have the week off!

NQR

The retail dealer model is most often unhedged, vanilla replication in listed markets or simply trading notional VaR limits with spot. BoM, for example, did a fair amount of gamma trading with the CME index and spot fx dealing.

Profitaker from ET? Howdy all.

 

[riskarb]

BTW: BoM will no longer accept US-domiciled accounts. www.clickoptions.com is SocGen's retail offering.