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.
Options and Volatility
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
Options Theory
Celibacy Vs Condoms: The Answer To Whether You Should Trade Options
Options are surgical tools. They are priced for specificity. What to consider before bothering with them.
Options and Volatility
An Example “Options Relative Value Trading Framework”
The professional inspiration for moontower.ai
How Markets Work
Excerpts From Benn Eifert on the Odd Lots Podcast
An insightful interview with the QVR option fund's founder
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
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
Understanding Vega Risk
Learn how option prices depend on changes in implied volatility
Options Theory
On Delta Hedging
The broad trade-offs when trying to isolate volatility bets
Options Theory
Structuring Directional Option Trades
Options allow us to express bets on the distribution of the underlying instead of just "will the stock go up or down?"