Options and Volatility
How Options Confuse Directional Traders
How you can be right on direction and still wrong
Options and Volatility
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