Comments on: Candy Asset Exchange Rates http://longorshortcapital.com/candy-asset-exchange-rates.htm We dividend our ad money to you. Thu, 11 Mar 2010 05:51:52 -0800 http://wordpress.org/?v=2.9.1 hourly 1 By: Journey To Financial Freedom » Blog Archive » Carnival Of Investing Week 61 http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2936 Journey To Financial Freedom » Blog Archive » Carnival Of Investing Week 61 Sun, 12 Nov 2006 23:50:13 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2936 [...] Candy Asset Exchange Rates from Long or Short Capital [...] [...] Candy Asset Exchange Rates from Long or Short Capital [...]

]]> By: The Corner http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2609 The Corner Thu, 02 Nov 2006 19:47:15 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2609 Haha to be honest, when I first posted, I had done the conversion wrong in my head. Had I thought of it right, .4 Peanut M&M's to Plain is pretty much exactly what I think it should be and there really is no upside in a long position. Unfortunately I had already posted a bullish peanut M&M philosophy, so rather than change it I just decided it would be more funny to leave it as is. You can go ahead and take your profits on this one though, because like Mizuho would do, I'm suing the Exchange that allowed this order to go through. Haha to be honest, when I first posted, I had done the conversion wrong in my head. Had I thought of it right, .4 Peanut M&M’s to Plain is pretty much exactly what I think it should be and there really is no upside in a long position. Unfortunately I had already posted a bullish peanut M&M philosophy, so rather than change it I just decided it would be more funny to leave it as is. You can go ahead and take your profits on this one though, because like Mizuho would do, I’m suing the Exchange that allowed this order to go through.

]]> By: Mr Juggles http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2607 Mr Juggles Thu, 02 Nov 2006 19:37:15 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2607 With your inability to adequately establish internal controls for yourself, why would a middle market brokerage hire you to maintain their internal controls in this regulatory environment? My short "The Corner" position has been EXTREMELY profitable and I have no intention of closing it out. I'm riding this one to zero. With your inability to adequately establish internal controls for yourself, why would a middle market brokerage hire you to maintain their internal controls in this regulatory environment?

My short “The Corner” position has been EXTREMELY profitable and I have no intention of closing it out. I’m riding this one to zero.

]]> By: The Corner http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2606 The Corner Thu, 02 Nov 2006 19:23:14 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2606 Well that's it. I've gone and Amaranth'd my way to steep losses on the peanut M&M. How does a plain M&M trade at a premium to a peanut M&M? I don't quite understand. My prime broker just made a margin call that I can't meet. Looks like I'll have to hand in my nifty mesh-backed jacket and take a job in compliance at a middle market brokerage. Well that’s it. I’ve gone and Amaranth’d my way to steep losses on the peanut M&M. How does a plain M&M trade at a premium to a peanut M&M? I don’t quite understand. My prime broker just made a margin call that I can’t meet. Looks like I’ll have to hand in my nifty mesh-backed jacket and take a job in compliance at a middle market brokerage.

]]> By: Johnny Debacle http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2602 Johnny Debacle Thu, 02 Nov 2006 18:25:48 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2602 What are you offering it at? Seems like it would be an illiquid market. 3-6 units of Candy Corn? Send us your run. What are you offering it at? Seems like it would be an illiquid market.

3-6 units of Candy Corn? Send us your run.

]]> By: Trader Stu http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2601 Trader Stu Thu, 02 Nov 2006 18:21:49 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2601 Can we get a price update? I'm ultra-long Oh Henrys and I may want to make a market. Can we get a price update?

I’m ultra-long Oh Henrys and I may want to make a market.

]]> By: Behind R4NT » Blog Archive » Long the Sour Patch Kids http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2600 Behind R4NT » Blog Archive » Long the Sour Patch Kids Thu, 02 Nov 2006 18:00:31 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2600 [...] More Here [...] [...] More Here [...]

]]> By: Mr Juggles http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2571 Mr Juggles Wed, 01 Nov 2006 20:42:53 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2571 The market agrees with you less and less. The market agrees with you less and less.

]]> By: The Corner http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2568 The Corner Wed, 01 Nov 2006 19:29:48 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2568 Mr Juggles, I had indeed considered the peanut allergy phenomenon. While this may push the value of a peanut lower, or at least increase volatility of said peanut, a plain M&M is still enhanced by inclusion of a peanut. Mr Juggles, I had indeed considered the peanut allergy phenomenon. While this may push the value of a peanut lower, or at least increase volatility of said peanut, a plain M&M is still enhanced by inclusion of a peanut.

]]> By: tins ::: Rick Klau’s weblog » Emerging from Sugar Coma, Enjoying Long Or Short http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2563 tins ::: Rick Klau’s weblog » Emerging from Sugar Coma, Enjoying Long Or Short Wed, 01 Nov 2006 17:23:48 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2563 [...] Long or Short Capital is evaluating the burgeoning candy exchange market, thinking about standardizing on the candy corn as the unit of candy reserve currency, and traders are shocked that the peanut isn’t contributing to a rise in peanut M&M values. [...] [...] Long or Short Capital is evaluating the burgeoning candy exchange market, thinking about standardizing on the candy corn as the unit of candy reserve currency, and traders are shocked that the peanut isn’t contributing to a rise in peanut M&M values. [...]

]]> By: Mr Juggles http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2561 Mr Juggles Wed, 01 Nov 2006 16:31:04 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2561 Have you considered the rise in peanut allergies which has been experienced globally? It's a secular trend which is just killing peanut M&M values. Have you considered the rise in peanut allergies which has been experienced globally? It’s a secular trend which is just killing peanut M&M values.

]]> By: The Corner http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2559 The Corner Wed, 01 Nov 2006 15:42:53 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2559 I am losing my shirt on my long Peanut M&M's! They have devalued vs the plain M&M's! I might actually add to my position because I can't possibly imagine plain trading 1:1 with peanut. The Peanut has added value because they put a frickin peanut in there! NO WAY would anyone ever pay more than one peanut M&M for a plain M&M. In any case I knew I should have played this one with tighter stops... I am losing my shirt on my long Peanut M&M’s! They have devalued vs the plain M&M’s! I might actually add to my position because I can’t possibly imagine plain trading 1:1 with peanut. The Peanut has added value because they put a frickin peanut in there! NO WAY would anyone ever pay more than one peanut M&M for a plain M&M. In any case I knew I should have played this one with tighter stops…

]]> By: Mr Juggles http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2555 Mr Juggles Wed, 01 Nov 2006 13:31:43 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2555 Hella Sober- If peanut M&M's were to converge to a 1:1 basis with Snickers, this would probably have a negative effect on the Snickers : Charleston Chew rate. At these levels a better play is to be on convergence of M&M rates to the historical 1 M&M : 1.2 Peanut M&M rate. The price has already changed from 1 : 0.4 yesterday to 1 : 0.8. Hella Sober-

If peanut M&M’s were to converge to a 1:1 basis with Snickers, this would probably have a negative effect on the Snickers : Charleston Chew rate. At these levels a better play is to be on convergence of M&M rates to the historical 1 M&M : 1.2 Peanut M&M rate. The price has already changed from 1 : 0.4 yesterday to 1 : 0.8.

]]> By: Hella Sober http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2538 Hella Sober Wed, 01 Nov 2006 03:45:07 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2538 Go long the carry trade position of shorting candy corn against a diverse basket of kit kat and gummy bears. These assets are at higher risk (of melting), but the return on them is much greater. Of course, if there is a period of high cavitivity we would recomend unwinding this trade as quickly as possible and go long apple. We are also initiating a short snickers long peanut M&M's position at 1.07. It is rare to see snickers trading at this much of a premium to M&Ms. Our target price is 1.00, our stop is 1.10. The downside risk to this trade is that we may have entered a regime shift of high caramel valuation. If you see notable appreciation of rolos against skittles you may want to consider unwinding this trade. Go long the carry trade position of shorting candy corn against a diverse basket of kit kat and gummy bears. These assets are at higher risk (of melting), but the return on them is much greater. Of course, if there is a period of high cavitivity we would recomend unwinding this trade as quickly as possible and go long apple.

We are also initiating a short snickers long peanut M&M’s position at 1.07. It is rare to see snickers trading at this much of a premium to M&Ms. Our target price is 1.00, our stop is 1.10. The downside risk to this trade is that we may have entered a regime shift of high caramel valuation. If you see notable appreciation of rolos against skittles you may want to consider unwinding this trade.

]]> By: Sir Equity Go http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2537 Sir Equity Go Wed, 01 Nov 2006 03:42:52 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2537 "This is great"- Yes you are correct, General Walrasian is a strong advocate for a monetized candy exchange “This is great”- Yes you are correct, General Walrasian is a strong advocate for a monetized candy exchange

]]> By: this is great http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2535 this is great Wed, 01 Nov 2006 02:44:32 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2535 I smell Walrasian general equilibrium coming on I smell Walrasian general equilibrium coming on

]]> By: Sir Equity Go http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2532 Sir Equity Go Wed, 01 Nov 2006 01:44:42 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2532 Rumors are flowing in that the CMU (Candy Monetary Union) is on the verge of adopting candy corn as its standardized measure of candy value. This has nothing to do with the intrinsic value of candy corn; candy corn just happens to be the most convenient because it melts neither in your hand nor in your mouth; in short it doesn't melt. As the candy market switches from a bilateral exchange market to a monetized market, the transactions demand for candy corn stands to go through the roof. Trade gummies for candy corn. A perfect hedge for this trade (given that the CMU may not in fact monetize) would be to simultaneously trade candy corn for gummies. Rumors are flowing in that the CMU (Candy Monetary Union) is on the verge of adopting candy corn as its standardized measure of candy value. This has nothing to do with the intrinsic value of candy corn; candy corn just happens to be the most convenient because it melts neither in your hand nor in your mouth; in short it doesn’t melt. As the candy market switches from a bilateral exchange market to a monetized market, the transactions demand for candy corn stands to go through the roof. Trade gummies for candy corn. A perfect hedge for this trade (given that the CMU may not in fact monetize) would be to simultaneously trade candy corn for gummies.

]]> By: Mr Juggles http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2523 Mr Juggles Tue, 31 Oct 2006 22:48:45 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2523 Babies are among the most susceptible to arb opportunities precisely because they often have little to no education. In fact, Long or Short has done some proprietary work and found that the average baby has never attended any school in any form. They don't even read at a Pre-K level. It's a modern tragedy that there are US citizens with so little education. Something should be done about it. But for now, we can profit. Babies are among the most susceptible to arb opportunities precisely because they often have little to no education. In fact, Long or Short has done some proprietary work and found that the average baby has never attended any school in any form. They don’t even read at a Pre-K level.

It’s a modern tragedy that there are US citizens with so little education. Something should be done about it. But for now, we can profit.

]]> By: The Corner http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2521 The Corner Tue, 31 Oct 2006 22:30:47 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2521 Go long the Peanut M&M's and look for a significant revaluation over the near horizon. Don't standardize because then you'd lose your triangular arbitrage opportunities. Go long the Peanut M&M’s and look for a significant revaluation over the near horizon. Don’t standardize because then you’d lose your triangular arbitrage opportunities.

]]> By: PRoales http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2520 PRoales Tue, 31 Oct 2006 22:19:05 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2520 TOBLERONE : 5 APPLES APPLE : 1/50 of a SNICKERS Arb the Toblerone to Snickers rate through Apple. TOBLERONE : 5 APPLES
APPLE : 1/50 of a SNICKERS

Arb the Toblerone to Snickers rate through Apple.

]]> By: Johnny Debacle http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2519 Johnny Debacle Tue, 31 Oct 2006 22:02:56 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2519 As we get more complete data, specifically something that bridges us to a SNICKER : SKITTLES, standardization will become possible. But keep in mind, standardization would dillute the value of our propietary candy trading database. How can we most effectively steal candy from babies if there is full transparency on trading levels? This would cause a reduction in bid-ask spreads and have a negative impact on the profability of our trading desk. As we get more complete data, specifically something that bridges us to a SNICKER : SKITTLES, standardization will become possible.

But keep in mind, standardization would dillute the value of our propietary candy trading database. How can we most effectively steal candy from babies if there is full transparency on trading levels? This would cause a reduction in bid-ask spreads and have a negative impact on the profability of our trading desk.

]]> By: Cornelius http://longorshortcapital.com/candy-asset-exchange-rates.htm/comment-page-1#comment-2518 Cornelius Tue, 31 Oct 2006 21:57:25 +0000 http://longorshortcapital.com/candy-asset-exchange-rates.htm#comment-2518 shouldn't you standardize the conversion rates to make this chart more pragmatic? shouldn’t you standardize the conversion rates to make this chart more pragmatic?

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