Socratic Puzzles To Build Your Financial Intuition
Puzzles to build fundamental trading logic
This is a list of homework-like posts that allow you to slowly build intuition for financial math or derivatives topics.
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Options on Levered ETFs (part 2)
Last week, in part 1, we backfilled prerequisite knowledge: 1. Distance in return space: equal percentage moves aren’t equal in compounded or log space 2. Vol bonus vs vol tax: trend and chop change the distribution of a levered asset 3. Derivatives-on-derivatives: options on the underlying ETF are inputs
Option on Levered ETFs (part 1)
“They” say human labor will be irrelevant by 2027. By then, any business you can think will be solved by capital (electricity and tokens) before you brush your teeth in the morning. You either get rich in the next year or join the permanent underclass. So we aren’t shocked
"trader" is a uselessly broad term
key differences between retail and institutional traders
the arbitrage reflex is more profitable than the opinion reflex
the "system 2" reaction to a proposition