Excercising Options and Optional Excercise

In my last semester at the U, as a Finance major, we have been discussing stock options; fascinating to all of you I'm sure. Lexi loves it when I tell financial theorem bedtime stories so I'm dedicating this post to her.

The professor says "mathematically, gamma is the first derivative of delta and is used when trying to gauge the price of an option relative to the amount it is in or out of the money." I hear "blah BLAH BLAH!!" Actually I understand and this is how I interpreted it. Options value's increase as volatility and the time allowed to exercise increases. That makes sense to me but you probably hear, "blah blah BLAH!"

Let me put it this way, Lexi likes options and won't make up her mind until she has to. Lexi realizes the underlying theorem, the longer she waits to make up her mind the more value she can possibly derive from the outcome. The more volatile life is the more value she gets in not making up her mind because the volatility may cause her to change her mind. Likely this is a joke that only I get, if so thanks for your time and the next paragraph is more entertaining I promise.

The past couple of weeks I have been trying to lose weight and get in shape. I even went as far to make workout goals that force me to forfeit my spending money to my wife if I don't meet them. For each blank space Lexi gets one dollar.

To further solidify my standing as an analytical geek, here is another graph showing my variance from my daily weight loss goal. All of this evidence proves four things.




1. Lexi's tendency to procrastinate decisions is a zero-sum game where she wins and everyone else loses.
2. Lexi is right again and after four years of college I'm finally learning this.
3. Lexi will make money because in my weight loss plan exercise is optional.
4. Lexi is made for me because who else will listen to my ramblings and balance me out.