Options and Volatility
What Equity Option Traders Can Learn From Commodity Options
Lessons of markets that rhyme
Options and Volatility
Options and Volatility
Scatterplot Gallery
A tour of SPY skew in pictures
Options and Volatility
“Renting A Straddle”
When event pricing hides extremely cheap trading day volatility
Options and Volatility
A birdie asked how to model a 1-day option
Thoughts about pricing 0DTEs that respect how volatility unfolds
Options and Volatility
Using Options Better
A smattering of practical option tips
How Markets Work
Mermaids, Fireflies, and the Bid-Ask Spread
On ETF and option market-making
Options Theory
Socratic Puzzles To Build Your Financial Intuition
Puzzles to build fundamental trading logic
Options and Volatility
If you annualize volatility with 252 days can you use that number in a 365-day option model?
Why all implied volatilities are "wrong"
Options and Volatility
A Simple Demonstration of Return Vs Volatility
Volatility is a quadratic drag on returns
Options Theory
You Think You’re Trading Vol...But Are You Even?
The implied volatility you think you're trading technically depends on your actual funding costs not the ones inherited from the marketplace.
How Markets Work
Battle Scars As A Call Option — The UNG Experience
A case study in oblique risk
Risk and Edge
Understanding Log Returns
The basics of log returns
Options and Volatility
Using Log Returns And Volatility To Normalize Strike Distances
Log returns measure how far strike prices are from the stock price as a function of time and volatility
Risk and Edge
Geometric vs Arithmetic Mean In The Wild
Using SP500 returns to distinguish geometric (compounded) returns from average arithmetic returns
Options Theory
Understanding Implied Forwards
Learn how to compute the the volatility between 2 expirations
Options and Volatility
Examples Of Comparing Interest Rates With Different Compounding Intervals
Translating rates of return over different time periods