430300+ entries in 0.144s
mircea_popescu: and in any event it's better than bitcoinica-style forced liquidation event.
mircea_popescu: which is why people were lolling at people who lost their stuff in bitcoinica.
mircea_popescu: so in this sense it can work as leverage, even as high as 10`000%
mircea_popescu: if you buy 1 btc at 24, then you risk 24. if you buy 1 btc synthetically via an option at 8, you risk only the 8.
mircea_popescu: he paid the extra whatever , 50 cents, a dollar, to insure his 17 capital out of the 24 against the possibility of loss
mircea_popescu: back when btc was about 14/each an option struck at 15 would have cost about .15 btc say, roughly, so like 2 dollars.
mircea_popescu: you end up with an account plan doing a. btc buying slippage gain/loss ; b. overtime btc gain/loss ; c. option entry/exit gain/loss
mircea_popescu: then when you do options value btc in then-current vwap and add difference to acct
mircea_popescu: then do vwap price when you buy, actual price you bought at
mircea_popescu: mjr_ the excruciatingly precise way to do it would be to keep separate accounts.
mircea_popescu: (value of decision to buy btc + value of decision to buy option) together
mircea_popescu: mjr_ well you have to decide if you keep books in btc or not
mircea_popescu: take O.BTCUSD.P350T. you can sell it now for 0.43102778
mircea_popescu: consequently, hedging is both responsible and required.
mircea_popescu: however people feel is irrelevant. we don't know for a fact nor is there any clear mathematical proof that btc only goes up.
mircea_popescu: this question presuposes that one's state of mind is more important than reality.
mircea_popescu: Bowjob yeah, most middle eastern languages are like that.
mircea_popescu: ;;everify freenode:#bitcoin-otc:756619e2969805ca04cc00f67579d291c815df246f20807f9c7515ea
mircea_popescu: ;;everify freenode:#bitcoin-otc:756619e2969805ca04cc00f67579d291c815df246f20807f9c7515ea
mircea_popescu: hey kakobreklaa, would it be possible for assbot to have a !last x y which'd replay the last trade of y on x ?
mircea_popescu: i'd much rather just walk in a town than on a pasture.
mircea_popescu: a, and the various craps du jour. helping fags, women, niggers etc.
mircea_popescu: but with equal faith in collectivism, being nice and whatnot
mircea_popescu: i'll prolly be having dinners at the white house, if tht happens