Thank goodness for these new SEC guidelines in regards on how to price "distressed" securities. If there's something distressed the past week it's AAPL calls. My models tell me the AAPL Oct 155's I own are worth closer to $15, not the 15 cents this sham that passes for an options market tells me they are worth.
2 cents wide and 500 up on the screen? Yeah right, as if.
I'm also glad the SEC has dipped their toe into major league baseball. No bids on the Street for the distressed Mets bullpen (although a Tigers fan here graciously offered me a straight swap). I'm marking all those 8th and 9th inning meltdowns on a hold to maturity basis, which translates into about 10 more wins this year. Sorry Phillies, enjoy your golfing.
Marking positions to market is anti-capitalist and un-American. The minute we stop allowing MBA's to create illiquid derivative products out of the ether and then mark them where they say they are worth is the minute we have officially surrendered our freedom. Models can accurately price everything other than Executive Stock Options. Which should clearly be un-expensed since 2008 technology has no effective way to price an equity option that doesn't trade every day. Other than maybe Ivolatility.com and many other sites.
Marked to model will also save new Treasury Secretary Costanza from wasting precious "price discovery" time. A simple "what's the most I can pay you for that" call will now suffice.
