Quantum Optimization convergence (i.e., the maximum number of occurrences of a particular result) could mean a “high probability” of the event happening… in my case, the price of my stock will go up the next day.
In the computing we have today, a computation is deterministic, e.g. 2 +2 will always give a result of 4.
In the quantum world, the result is probabilistic, e.g. the same 2 +2 can be 4 in the in the 1st iteration, 3 in the next, again 4, then a 2 perhaps, then a 4, and a 3 and so on.
The value that converges, i.e., has the most no. of occurrences is taken as the result …
Thus, depending on what the convergent result is: Y or N,
I can choose to buy today, the stock, or CALL Option contracts,
and Hedge against downside risk of my stock purchase….
as well as trade the Option contracts too, based on the following decision matrix:
For a CALL:
If Market Price > qOtimp’s
Sell your Option Contract
Else Buy a new Option Contract
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For a PUT:
If Market Price > qOtimp’s
Buy a new Option Contract
Else Sell your Option Contract
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P.S. – there is also the “Black Swan” strategy.. buy PUT contracts on a daily basis and wait for a downturn, as what “In “Chaos Kings,” Scott Patterson profiles the financiers who build their portfolios around daily losses, and — when disaster strikes — seismic gains.”
– https://lnkd.in/gHSm-UFP
The “daily losses” arise by the strategy of daily purchase of PUT Options in order to avoid big losses such as those that happen in a crash – an “explosive downside protection”.
Thus…”….’even a small improvement in pricing them’, (i.e., the Option Price) ..” …..’could be very valuable,’ wrote Dr Will Zeng, Goldman Sach’s head of quantum research….”.
https://lnkd.in/gUqSSsxv
“It is in a complex system, ones in which we have little visibility of the chains of cause-consequences, that tinkering, bricolage, or similar variations of trial and error have been shown to vastly outperform the teleological – it is nature’s modus operandi.
– Nassim Taleb, author of “The Black Swan”
Caveat:
1) Some input is required to be put through the Quantum engine.
Assuming some input is available, Deutsch Algorithm ….can be used
On the way – A Quantum Optimized Timed Portfolio in a mobile app, with suggestions for Hedging with Options, whose prices are from qOtimp.
DISCLAIMER:
The information provided here is not to be construed as investment advice. Investors should approach legal Financial Advisers or Financial Institutions for advice pertaining to their investment decisions.
qOtimp is not liable for any damages resulting from the use of the information provided herein.
Cheers ?
