Gendernomics: Options and Obiters

Options within the financial industry are in essence securities that give you certain rights related to other securities. The most common being Call options that give you the right to buy a set amount of an underlying security at a set price known as the strike price, and Put options that give you the right to sell a set amount of an underlying security at a set price. These financial instruments can be used in a variety of ways the most common being hedging risk exposure and taking leveraged positions in the underlying security. The former is quite common among hedge funds, the latter among traders. The underlying basis for options is that the underwriter and the buyer have differing views on how the asset will develop going forward. In the case of a Call option, the option writer thinks the stock will fall and the buyer thinks the stock will rise, in the case of a Put option, the underwriter thinks the stock will rise, and the buyer thinks the stock will fall.

I’ve previously written on risk in the sexual market place and while men often neglect risks completely when it comes to sexual relationships, women are consummate risk managers who seek to guard in for most eventualities within the market place. It is not uncommon to see wealthy men go “all in” on a marriage working on, not just once but twice and thrice before realizing that they are really buying expensive hookers paid after the fact.

The inherent ability of women to risk manage within the sexual market place is a function of hypergamy and solipsism, in that hypergamy represents the drive to maximize the gain from her SMV over a relatively short lifetime, much in the same manner that a professional athlete needs to maximize the value of his ability over a short period of time, while solipsism permits her to do whatever is necessary in order to achieve this goal. Via solipsism a woman can justify any action she perceives as required in order to maximize her outcomes.

Orbiters and Risk Hedging

The first meeting most men have with female risk hedging in the sexual market place is the prevalence of orbiters, orbiters being the men who circle a woman waiting for her present relationship to end, or alternatively waiting for her to realize their value. The female portfolio of Orbiters can have many different instruments the most common being the ex-boyfriends who she keeps around to play dread games with her new boyfriend, the hapless betas who are waiting for her to realize that she needs a nice guy and the hard-friendzoned men who she keeps around for resource gains.

The distinction between the latter two being that a woman once she reaches her epiphany phase may settle down with one of the Betas, whereas those men who are hard-friendzoned will never be able to escape the category.

Each man type of man within her orbit represent different forms of risk hedging. The ex-boyfriends are there to be tools for dread game against her present boyfriend, or as tools in jealously plots with a man she is seeking to lock down. They also represent both a call option for a future relationship/sexual encounter and a put option on her present relationship, in that she can always call up an ex, when she offloads her present relationship. I’ve seen this called “The Slingback Effect“, wherein a woman will seek to return to a previous mate as a result of either waning fortunes on her end, or great fortune on his end.

The hapless betas are her defense against ending up alone, perhaps the most obvious examples are the “if neither of us are married by 40, let’s get hitched” wherein a woman secures provision through what is in essence a call option. The hapless betas along with the HFZ (hard-friendzone) men also serve as a form of Bond, in that they provide the woman with a stream of validation and “boyfriend internships” where they attempt to demonstrate what great boyfriends they would be based on equity and expectancy theory. In a sense, these men are “boyfriend-interns” in that they are performing the duties of boyfriend when she requires, without compensation.

In essence, by structuring her circle in this manner, consisting of a mixture of the 3 categories, this gives her a put option on her present romantic interest(s), and call options on the remaining men in the stable. It mitigates her risk if she were to discard her present, as she has men who will step up and fill his role, however it also assists in driving up her own value, as she appears very much in demand.

Orbiters and Options

One of the characteristics of various options is that they are either “in the money” or “out of the money”, what this means is that if the value of a security is above the strike price, a Call option is “In the money” and a Put option is “Out of the money”. When one buys an option, the value is derived from the follow primary characteristics, the current stock price, intrinsic value, time to expiration and volatility. The intrinsic value of an option is the value it would have if it was cashed in today and represents the portion of the price of the option that is not lost due to the passage of time.

The time value is the amount that the price of the option exceeds the intrinsic value, which is directly related to how far away the expiry date of the option is, this stems from the fact that the longer until the option expires the more chance it may end up in the money. As a general rule, an option will lose one third of its value in the first half of it’s life, and two-thirds of its value in the second half of its life.

The reasoning behind covering these concepts is that from the perspective of the orbiter the effort he dedicates towards the woman is in his mind a purchase of call options, once the option becomes “in the money”, he can cash in his call option for a relationship with the woman. The amount of time he is willing to dedicate to the woman, and his patience dictates the “time to expiration” however like regular options, many simply do not end up in the money, and as he has neglected his risk hedging he finds himself in a situation where he has to take the loss.

Men and Options

The male variant referred to as “Plate spinning” is very much the same concept as women operate with when it comes to orbiters. Perhaps the only meaningful difference is that while women do not engage in sex with their orbiters, but treat them as “platonic-beta providers”, men do engage in sex with their plates, while avoiding getting into relationships. This is embodied in the statement “Women use sex to negotiate a relationship, men use a relationship to negotiate sex“. Where the woman utilizes her options as a way to avoid ending up without a stable of resources, the men use their options to have regular access to sex, where if one plate elects to do something else, the man has other options.

However, another difference is the level of investment, while women in many ways buy options, meaning they make a small initial investment with an option to invest further at their convenience, men make larger initial investments, thus the pattern tends to mimic buying the actual security, instead of the option. While additional investment on other plates for a man represents a form of portfolio theory, wherein the effect of each woman on his total investment is much smaller.

A topic that I’ve covered extensively are opportunity costs, also known as “The best alternative foregone“, for the woman  a stable of orbiters that are acting like a group of interns has a very low level of opportunity costs, as she has to do very little to keep them around. This follows from among other the low replacement costs she faces for men who she values as low-value at present, and how easily most women can gather a new stable of orbiters. Check out the Facebook or Instagram feeds of even mediocre women and you will find a stable of men building up her self-esteem and working hard to be the one who gets to cash in his call option. For the woman, a stable of orbiters is a cheap insurance against finding herself without options, whereas for men being orbiters is an expensive risky investment, with a high probability of sunk costs.

Summary and Conclusions

The major issue that results for many men as a result of women’s investment in options, is that they spend excessive amounts of time and resources towards a single woman, with no guarantee of a return. In a sense, their investment may never be in the money, and thus their investment results in a net loss. For the woman, as the men are in fact making larger investments in her, than she is in them, she has built in risk-mitigation for her investments.

As she invests relatively little in each orbiter, and each orbiter invests heavily in her, she is always collecting a dividend from her investment, which means she has a best-of-both worlds scenario of the freedom of an option with the predictability of a bond. While men who spin plates in many ways follow the path of a bond investment where they purchase an instrument that yields a predictable return, the woman gets this predictable return without the initial investment.

In summary, she gets the return before making the investment.

For the orbiters on the other hand, they treat the situation as if they are buying a bond on lay-away. They are slowly investing more and more into the bond until they reach a threshold where it starts paying returns. However, the reality for them is that they are the guy refusing to admit that his startup has failed, and who keeps plowing money into a business with an unsustainable business model with little chance of making a return, instead of just closing down and moving on to other ventures.

This is perhaps the downside of the male drive to succeed, which comes with a side-effect of not wanting to give up. The single-minded focus that many men exhibit is both a blessing and a curse, blessing that it permits men to accomplish incredible things, curse in that it may prohibit them from admitting that something isn’t working.

Gendernomics is now available on Amazon.com

 

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4 comments on “Gendernomics: Options and Obiters

  1. BK says:

    Another excellent post connecting financial and dating practices!

    Like

  2. […] talked about how women are naturally prone towards engaging in various forms of risk management within the sexual market place in a previous essay, and the ability of a woman to risk manage […]

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  3. […] opportunity to present the product to the customer. Once an opener is successful a certain level of investment must be created in the customer prior to engaging fully in the product pitch, and once the customer […]

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