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
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?"
Options and Volatility
How Options Confuse Directional Traders
How you can be right on direction and still wrong
Risk and Edge
Path: How Compounding Alters Return Distributions
See how the path of returns can alter the distribution of p/l independently of expectancy.
Options Theory
Binary Straddle Example Based On The 2016 Election
When an outcome is binary with an implied probability, the straddle will tell you the expected move in either direction
Options and Volatility
Finding Vol Convexity
See how out-of-the-money options have non-linear responses to changes in implied volatility
Options Theory
Why Options Trades Focus on Vega
The most important greek for long-dated options
Options and Volatility
The Volatility Drain
The arithmetic behind how increased volatility reduces average compounded returns
Risk and Edge
Levered ETF/ETN tool
Compute the amount of dollars required to rebalance a levered exposure