coit's Butthurt Trading Contest

If the value of butthurt is fixed, why are we trading with eachother and not simply with the vast nebulous exchange/bank?
 
ThisIsAtlanta said:
If the value of butthurt is fixed, why are we trading with eachother and not simply with the vast nebulous exchange/bank?
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Well the price isn't fixed for trades. I was thinking this through last night and I think in practice it will work well, but not sure about the best way to explain it. Here's what I'm thinking...

For this week, lets say we beat BC, and butthurt price takes a nose dive. The folks that think we will lose might want to offer less than market rate for shares. Say you put an offer out for 100 shares at $80 a share. If I am certain we will win, I will sell you my shares at $80 so that I don't lose value down to $50 or wherever it goes.

And going into the Mercer game, folks would love to sell for below market price if they could.

It isn't perfect, but I do think there's some good strategies out there to be had if you think about the way the season is laid out.
 
coit said:
Well the price isn't fixed for trades. I was thinking this through last night and I think in practice it will work well, but not sure about the best way to explain it. Here's what I'm thinking...

For this week, lets say we beat BC, and butthurt price takes a nose dive. The folks that think we will lose might want to offer less than market rate for shares. Say you put an offer out for 100 shares at $80 a share. If I am certain we will win, I will sell you my shares at $80 so that I don't lose value down to $50 or wherever it goes.

And going into the Mercer game, folks would love to sell for below market price if they could.

It isn't perfect, but I do think there's some good strategies out there to be had if you think about the way the season is laid out.
Click to expand...

Makes sense. I think we should also have the option to liquidate to the exchange at the going rate at any volume, though, as well as buying shares at the going rate. I don't know if we'll have a large enough market actively playing to clear before each game.
 
ThisIsAtlanta said:
Makes sense. I think we should also have the option to liquidate to the exchange at the going rate at any volume, though, as well as buying shares at the going rate. I don't know if we'll have a large enough market actively playing to clear before each game.
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Yeah, in a way it will be like any other Fantasy Football league. People are entered, but have no interest in trying to trade.

But the list is there, so you can bug other folks to death to get them to trade with you.

I just realized I forgot to put in details about short sales. I had planned to, but got stuck thinking about there being a pool of stock or something. I had planned to require all short sales to be settled during the next week, ie, no multi-week carryovers.

If you short sell with another person, you might get stuck in a tough situation if you have to buy back at whatever rate you can agree on with another person.

But, if you could short sale to another person, then buy back at market rate, that could be a way to do it. This would increase the total number of shares being traded.

The other thing I had wanted to do but didn't want to commit to at this point was to use the result of negotiated price trades to adjust the market share price on the fly.
 
The price of butt hurt is not fixed. The quantity of butthurt is based on the number of fans. If our fan base does not increase or decrease, the quantity of butthurt cannot increase or decrease. The value of butthurt can increase or decrease.
 
ThisIsAtlanta said:
An interesting system. I deeply desire multi-week short sales.
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Well I guess since this is a contest, we could allow people to go short and have a negative share balance across multiple weeks and just reflect that in their balance.
 
BarrelORum said:
The price of butt hurt is not fixed. The quantity of butthurt is based on the number of fans. If our fan base does not increase or decrease, the quantity of butthurt cannot increase or decrease. The value of butthurt can increase or decrease.
Click to expand...

Yeah there isn't a good way of capturing that in this contest. In this case, the price is more reflective of how butthurt the fan base is. IE, it goes up after a loss and down after a win.
 
ThisIsAtlanta said:
An interesting system. I deeply desire multi-week short sales.
Click to expand...

After some additional thought I think I'm going to have to leave short sales out this time around. I can't think of a way to do it that would be worthwhile. If I let everyone short sale a certain amount, of course everyone would do it before the Mercer and GS games. Maybe next time.
 
@ThisIsAtlanta what about this regarding a fluctuating market price?

Let the strike price of a trade posted in the forum become the new share price going forward. The market will open the week with the adjustment for the win or loss, and from there, people can negotiate trade prices higher or lower.
 
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If you think you have enough time to track all that, I'll play it. It's a real market then, almost. Maybe a Chinese market lol.
 
Updated the trading rules today to require trade prices to be within 10% of the current price. This is to eliminate the possibility of selling a single share at $1 to crash the entire market.
 
The Butthurt market is ruining our country. Big Butthurt dealers are making a fortune off of our misfortune.

I'm all in.
 
l-f-c-c.jpg
 
This is what I get for not checking the forum earlier this week.

I'm butthurt I can't trade in the butthurt market.
:bigcry:
 
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