Options Theory
If You Make Money Every Day, You’re Not Maximizing
A treatise on hedging
Kris Abdelmessih
Risk and Edge
From CAPM To Hedging
CAPM can help us compute hedge ratios and estimate "idio" risk
Options Theory
There’s Gold In Them Thar Tails: Part 2
Part 2 of selecting outcomes from the tails of a distribution
Options Theory
There’s Gold In Them Thar Tails: Part 1
Selection from strictly narrowed criteria
How Markets Work
Notes From SIG's Todd Simkin
This interview lifts the veil a bit on SIGs trader education program and culture.
Options Theory
What Part Of Selling Calls Is “Income”?
Trading any option requires a view on volatility
Risk and Edge
Solving A Compounding Riddle With Black-Scholes
A puzzle that demonstrates why option models assume lognormal distributions
Risk and Edge
I Felt Bad For Picking My 3rd Grader Off
On quarantining risk by reducing dependencies
Options Theory
Selling Calls: It Might Be Passive, But It Ain’t Income
The premium you receive for writing calls is not passive income but compensation for risk
How Markets Work
Using Insurance For Tax-Free Investment Growth
Insurance is a surgical tool -- use it carefully
Options Theory
Dispersion Trading For The Uninitiated
A gentle introduction to trading implied index correlation
Options Theory
The Monty Hall Problem Is More Than A Game
Real-life application of the Monty Hall conditional probability problem
How Markets Work
What The Widowmaker Can Teach Us About Trade Prospecting And Fool’s Gold
How an option market decomposes probability from expectancy
Options and Volatility
A Cleaner Dashboard: Z-Scores Instead Of Price Changes
Use volatility-aware price changes for more context in your dashboards
Options Theory
Portfolio Theory And The Invisible Option On Hobbies
Portfolio theory is a portable idea to other parts of life
Options Theory
Jensen’s Inequality As An Intuition Tool
Practice in distinguishing linear vs non-linear phenomena