Options Theory
Greeks are Everywhere
Greeks are just fancy terms for a familiar idea: how sensitive options are to their inputs
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Options and Volatility
The Gamma Of Levered ETFs
Applying the concept of option gamma to understand how levered ETF deltas trigger daily delta rebalances
How Markets Work
3-Card Macro
A rare excursion into macro
Options Theory
Moontower on Gamma
The first option greek people learn after delta is gamma. Recall that delta represents how much an option’s price changes with respect to share price.
How Markets Work
Finance Guilt
Defending finance careers
Options Theory
If You Make Money Every Day, You’re Not Maximizing
A treatise on hedging
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