I'm in the county town, and you say I'm a big shot?

Chapter 178: Let's invest 2000 million, just for fun?

“I’ve heard of it. I have a college classmate who did a year of graduate school in Hong Kong and now works in the investment department of Morgan Stanley in Shanghai. I heard they use quantitative trading for their investments.”

Shi Guangrong replied.

Fang Qingye picked up where he left off: "Quantitative trading uses mathematical models to replace subjective human judgment. It uses computer technology to sift through massive amounts of historical data to identify a variety of 'high-probability' events that can generate excess returns in order to formulate strategies. This greatly reduces the impact of investor sentiment fluctuations and avoids making irrational investment decisions in situations of extreme market euphoria or pessimism."

"Using Gamma to calculate the probability of a doomsday scenario is just a small application of quantitative trading. Do you think it works or not?!"

After listening to Fang Qingye's words, Shi Guangrong fell silent. After a while, he said, "When I was in college, I believed in these theories. But in practice, to be honest, those so-called theoretical calculations are not as accurate as my own analysis."

"That's because: First, you're using the wrong theories, or rather, the ones you're using are outdated. Second, you don't have enough capital to use them. If you were managing tens or even hundreds of billions of dollars in investments, you would know the superiority of quantitative trading," Fang Qingye said calmly.

Shi Guangrong looked at Fang Qingye's profile.

Hundreds of billions or even trillions of dollars?
He never thought about it.

Could it be him?!

impossible.

"Don't look at me like that," Fang Qingye laughed. "I don't have that much money. I don't even have as much as you. If you don't believe me, you can ask your classmate."

Upon hearing Fang Qingye's words, Shi Guangrong suddenly laughed.

"why are you laughing?"

"You told me to ask my classmate. Now I remember, last year his investment department suffered huge losses investing in A-shares."

Fang Qingye smiled after hearing this and said:
"Whether it's quantitative trading or subjective human judgment, you can't go against the trend. Besides, there's no short selling in the A-share market yet. But no matter what, the risk of quantitative trading is far lower than that of traditional subjective judgment."

Shi Guangrong did not respond.

Fang Qingye didn't continue. He didn't intend to persuade Shi Guangrong—there was no need for that. He was just bringing up the topic and sharing his opinion.

Just then, Fang Qingye's QQ on her phone beeped again. She took it out and saw that it was a message from Dongguan Girl.

"Husband, I've changed the parameter settings. Would you like to try it again?"

Judging from the time, it was just sent.

It's 7 a.m. in Beijing now, which is 5 a.m. in Chicago, right?
Are girls from Dongguan up this early?
still?

Then the other person sent another message: "I've been busy all night, I'm so tired, I'm going to sleep now. Bye."

They actually stayed up all night?!
This touched Fang Qingye deeply, and she quickly typed a message to him.

"Don't stay up late anymore, it's bad for your health."

"It's okay, I'm young, hehe, time for bed."

Fang Qingye shook her head and put her phone back in her pocket.

"What? Is it your anime girlfriend again?" Shi Guangrong asked with a smile.

Fang Qingye nodded and said, "Yes, I need to go home and recalculate."

“I’ll go too,” Shi Guangrong quickly said.

What the hell!

Why are you so shameless?

You look so refined and handsome, I never expected you to be so shameless.

Since Shi Guangrong insisted on coming along, Fang Qingye couldn't go home, so he rode his little scooter to his workplace. Once inside his office, he turned on his computer and began to calculate carefully, while Shi Guangrong stood behind him, watching intently.

Fang Qingye didn't care whether he understood it or not, because you can't remember these things just by looking at them.

After some calculations, Fang Qingye concluded that the revised model developed by Dongguan Girl could be used for formal trading.

He opened the futures market and saw that the September contract price for Zhengzhou cotton was still fluctuating around 15550. "The calculated GAMMA is 10, we can give it a try," Fang Qingye said.

"What do you mean?" Shi Guangrong asked.

"In other words, if there's a high probability that a certain solar eclipse will occur, we can take a gamble," Fang Qingye said with a smile. "President Shi, would you be willing to take a chance? Invest 2000 million and have a go?"

Shi Guangrong pondered for a moment and then shook his head.

In his view, Fang Qingye is now a gambler.

Are you crazy to invest 2000 million based on some GAMMA value that you don't even know how it was calculated?
My money is all earned through hard work, not blown away by the wind!

I don't know how much effort I put into this cotton futures market, or how many sleepless nights I spent.
Fang Qingye smiled, said nothing, and turned off the computer.

"Okay, let's go home and sleep."

"Not buying tonight?" Shi Guangrong asked hurriedly.

"What's the rush? Tomorrow is the last day to exercise the options."

I.
Shi Guangrong's lips twitched, but he didn't say anything.

The next morning, Fang Qingye came to work on time as usual. When she opened the futures trading platform at nine o'clock, she found that the September cotton futures price was still fluctuating around 15550, as if it were asleep.

The corresponding option contract price is 5.

Fang Qingye stared at the screen, lost in thought.

According to our calculations, if a certain day occurs, meaning the cotton futures price will rise to 16000 yuan before today's contract expires!
Then the option contract price of 5 yuan will increase several times or even ten times!

If it cannot be achieved, its value is zero.

After thinking for a few minutes, Fang Qing decided to place an order.

Believe in yourself, and believe in Dongguan girls this time.

There's an unwritten rule in the industry when it comes to trading last-day options: you shouldn't use more than 5% of your total capital to buy last-day options. Fang Qingye currently has 100 million yuan, so he can only use 5 million yuan at most.

However, Fang Qing also wanted to invest more.

Will my collaboration with the girl from Dongguan work out this time?
20%, that's 2000 million!
Cotton options are sold in lots of 40 contracts, and Fang Qingye bought 1000 lots.

Just then, the cell phone on the desk rang. It was Shi Guangrong calling, and Fang Qingye answered it without thinking.

"President Fang, have you bought it?" Shi Guangrong's voice was somewhat urgent.

"I bought it. Why are you coming in to play too?" Fang Qingye asked with a smile.

"Me? Forget it, I'm a coward."

Hearing this, Fang Qingye smiled.

"Can I go to your office?" Shi Guangrong asked again.

"What are you doing here? I'm at work," Fang Qingye replied.

"President Fang, you must be worth over a hundred million now, right? You actually dared to spend 2000 million on the Doomsday Wheel, and you're still working as an employee in this small place?! What kind of job is that?"

"Not an employee, but the assistant to the bank manager," Fang Qingye said, half-jokingly and half-seriously.

"So what if you're the branch manager's assistant? Even the branch manager, or the city or provincial branch manager, isn't worth as much as you! I drove over here!"

After saying that, Shi Guangrong hung up the phone.

This guy.
Fang Qingye shook his head.

(End of this chapter)