A Yacht Was Spotted In Chicago With A Name That Only Traders Could Appreciate
May 29, 2014, 09:08 IST
Chicago person spotted a 72-foot Princess Yacht appropriately named "Moar Theta" on Lake Michigan this weekend. It's a name that only traders could truly appreciate.
"Theta" refers to time decay on an option, or collecting premium from selling options. It represents the time variable in the Black Scholes option pricing model. Generally speaking, the larger the theta, the higher the option premium.
UPDATE: Our source initially thought he saw Ken Griffin, who runs options market-making firm/hedge fund Citadel, on board. It wasn't him.
The yacht is actually registered to J. Brian Schaer, records from the Coast Guard show. Schaer, who is from Miami, is a derivatives portfolio manager at well-known Chicago-based proprietary trading firm Ronin Capital, his LinkedIn profile shows.
We're also told that Schaer was a "legend on the floor" at the CBOT.
**We reported earlier that hedge fund manager Ken Griffin was seen on the boat. It wasn't Griffin. Our apologies.
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"Theta" refers to time decay on an option, or collecting premium from selling options. It represents the time variable in the Black Scholes option pricing model. Generally speaking, the larger the theta, the higher the option premium.
UPDATE: Our source initially thought he saw Ken Griffin, who runs options market-making firm/hedge fund Citadel, on board. It wasn't him.
The yacht is actually registered to J. Brian Schaer, records from the Coast Guard show. Schaer, who is from Miami, is a derivatives portfolio manager at well-known Chicago-based proprietary trading firm Ronin Capital, his LinkedIn profile shows.
We're also told that Schaer was a "legend on the floor" at the CBOT.
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