Wednesday, December 2, 2020

Structured queue model

Vol Gurus Warn Of "Definite Erosion" To Options Structure Underneath The Market

Finance has always been sandbox.

If we think of the options market as a liquidity bank, then deposits and loans are separately structured loans but have to meet the Markov criteria, which is why the golden ratio keeps popping up, it is part of the solution set along the 1,y,z chain of states.

Or consider Walmart as a structured queue of clerks opposing a structured queue of customers. The pit boss is handling spin, the one in 1,y,z. He gets one half step advance if he keeps spin at 1, or one standard unit variance.

The sandbox assumption is that the automated pit boss is always the 1,y,z chain because transaction costs are low and  free entry and exit will mean higher energy states are decomposed. Humans mostlly have a low Avogadro.

But this simplest of the sandbox models means all direct inflation, deflation comes entry and exit of S/L pits as needed.

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