Daily Speculations

The Web Site of  Victor Niederhoffer & Laurel Kenner


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Steve Wisdom

Big Whingeing Wimps


Q. how's the borrow on [Stock XYZ]?

i've always heard brk/a is nearly unborrowable  .. . also has  no listed
options afaik .. . and if you trade otc options the  dealers will skin you
alive .. . pay you 10 vol if y'r a call writer

i've heard the same ... and that's why the vol bid on calls is so low ...
dealer can't borrow it either

i'm going to write an essay on this some time..  joe public thinks wall
st'ers are big swinging d--ks eager to take on risk.. in fact they'r
cowards, deathly afraid of any unhedgble risk.. and especially afraid of the
''risk manager'' who works in a cubicle down the hall .. and this is more
true than ever.. the average guy who opens a subway sandwich shop is taking
more risk, relative to assets, than a wall st dealer

i couldn't agree with you more ... just this morning i was shown a straddle
market $0.40 below the screen bid -- ten minutes after i worked it myself
electronically, i got a phone call "oh, you got it done anyway?"  

Steve Wisdom, a Pennsylvania-born Harvard graduate, has been Victor Niederhoffer's right-hand man off and on for more than 15 years. He also has been associated with Trout Trading, Societe Generale and Deephaven Fund