A stock is like a living organism. A sparrow, say. And we are able to create an emergent-based abstraction of that sparrow, which closely approximates the sparrow itself, accounting for migration patterns, wind, weather, and other variables. We can create a similar abstraction of a stock combining the information from the specific ETFs, which represent its underlying dependencies. And if we apply this to the stock we can predict its delta, following the path of its extracted self, because nature follows abstraction.
- Taylor Mason, Billions S02E10
I tried asking on quant se but no luck. I'm basically wondering if we can always predict a stock's delta. I have a feeling the show might've been just saying a bunch of words to sound smart but then turned out incorrect. The thing is the stock's delta should be either +1 or -1 depending on what position you are, namely, resp, long or short.