Goldman Derivative Desk Trading Summary

Tyler Durden's picture

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SheepDog-One's picture

My brother stopped by the other day and wanted to upload a video on my channel, WARNING, not for all audiences, rated X, no holds barred, and vulgarity abounds.

Sudden Debt's picture

is that your brother?


I think he needs his medicine :)

SheepDog-One's picture

No thats just what people who ARENT on medication talk about. I know its rare in this world society to see someone NOT on 3 anti depressants at once. Shocking stuff to see a person who actually gets it.

Sudden Debt's picture

gets it? :)


Whenever a company sells a product to another company, like say the oil he talks about, the first pays a tax indeed but gets that refunded. In the end, only the the consumer pays the tax. (he who consumes the product)

Otherwise our products would cost about 10 times more.

These kind of guys do need medication and a quick lesson in economics.

That's what's the actual problem is today with most people: They lack even the simplest basics of economics.

I stopped watching in the midst of his tax "explanation" but I bet it didn't get better than that.


SheepDog-One's picture

Yea, you pay 90% tax at least...and not only that but whatever youre buying youve ALREADY PAID FOR! Your FRN's are DEBT ITSELF! Most people cant handle the truth. You all think youre rich, when all you really have is debt under a US Corporation.

Banjo's picture

SheepDog-One: I doubt a conversation with Noam Chomsky, Nelson Mandela or "pick your favorite political thinker" would be talking so much about dick in the ass. In fact without these four words the video would only be 20 seconds long.

So he doesn't like the current system. Neither do I what is he doing about it? What organisations or political movments is he involved in. Where is his blog.

The last bit on we deserve it he don't care what they do to us we deserve it. Wow where do I sign up for such insight does he have a news letter I can subscribe to?

I think he is probably a big time sheep that got burned in the market crash and subsequent economic downturn probably with buckets of debt or rent to pay. Has an entitlement mentality and wants to rant and blame others.

Loose-Tools's picture

Earlier in my life I tried to "get with the program" and be a good sheeple in the career (corporate) and organized religion arenas. Both entities were control freaks. I even went the "brain numbing" route of anti-depressants, probably because the "penetration" by both entities was so deep it went clear up into my skull. I am a thinking individual now, free from "medication", and have removed all "anal probes" permanently. So, I can understand what the man is saying (I just don't have the hatred component).

Dingleberry Jones's picture

LOL! I was thinking the same thing. I could only take a few seconds of that.

SheepDog-One's picture

Oh, well most sheeple have the same reaction to hearing what they really are. Not surprising.

Dingleberry Jones's picture

The content was unoriginal, disorganized, and naive. And that was just the first minute. If you want to be taken seriously, take some time and prepare your thoughts, write a script, do some research, clean yourself up, and learn how to present to a camera.

As stupid or "sheeple" like as it sounds, presentation style points do matter. Ease of ingestion of information lowers the barrier for an idea to seep into someone's subconcious.  Only the rare off the cuff rant ever works. 

SheepDog-One's picture

BTW, Goldman Sachs....I hope you all meet with the worst long drawn out painful deaths imaginable, then fry in hell forever.
Oh Goldman Sachs employee dropped by to junk? Up your ass sideways.

fbrothers's picture

In their disclosure they tell you they have a conflict of interest. That could effect the objectivityof the report. Duh? Does that mean it is all BS?

Mercury's picture

While the volatility priced into index options is moderate relative to history, the downside skew to that volatility remains elevated.

How much is this the market accurately pricing specific risks and how much of it is spillover from increased "black swan"/Taleb awareness (all the cool kids are hedging this way) in the last few years I wonder?

The predictive track record of SKEW doesn't seem all that great particularly:

mynhair's picture

Investors?  What are those?

SheepDog-One's picture

You know, Bernanke and Geithner.

slewie the pi-rat's picture

thank you, tyler.  this is pretty funny.  i haven't the time for the dumpster diving option maven read, right now, dammit!

my fave part is where the banksters and financials have less volatility, given the skew!

whenever i read this shit, i think:  mark to market?  probably not for at least another decade. 

SheepDog-One's picture

Mark to market is ancient history, never see that again.

Careless Whisper's picture

Mister Gregory, Phd, gives excellent advice. It's always in your best interest to listen to him and GoldmanSachs. They always look out for their clients, sans Timberwolf I.

February 2009:

A report, which was written by Krag Gregory and John Marshall, was distributed to clients of Goldman Sachs earlier today. The report advocated buying March 825 puts and selling March 745 puts on the S&P 500, which would create a "bear put spread".


ZeroPower's picture

From Feb 2009. Probs did quite well doing that since market bottomed in March.

Careless Whisper's picture

well i didn't see any mention of a two week spread. but i did see this:

The report stated that "our U.S. economics team sees little evidence that the downward spiral is abating".

ZeroPower's picture

Youre joking, right?

They were near month puts. Pay for some extra theta as a safety and boom, you were in the money big near beg of March.

Downtoolong's picture

We use several statistical methods including … log levels over long periods of time, and techniques … such as Vector Error Correction models (VECM).

“ Boss, I just closed our largest sale of the year to Intel, and it looks like IBM is on deck for another sale at least that size. “

“That’s great Smithers. Unfortunately, Goldman tells me our log levels are in the toilet and our vector errors are all skewed out of whack. It looks like we’ll be closing our doors soon.  

scratch_and_sniff's picture

lol VECM, soon to be predicting the future in a town near you.

Hephasteus's picture

I bet you they do about as well at vector error correction as a late model chevy cruize with no steering wheel.

slaughterer's picture

THESE are their "top trading themes"!!!  What dipshits.  Short GS immediately.  They are fucking brainless.

#1 Tablets drive change in the PC landscape: Buy calls on likely winners as investors evaluate 10 tablet launches in 2011; sell calls on traditional PC exposed names.

#2 Consumer buy-writes are attractive: Our analysis shows consumer stocks tend to rise but lag the broad market at this phase in the cycle.

#3 Energy calls are inexpensive relative to upside volatility potential; we identify the top nine call buying opportunities based on price targets, earnings growth, and multiple expansion potential.

#4 M&A: We identify options trades on 7 stocks to benefit from potential deal announcements