Options Theory
Greeks are Everywhere
Greeks are just fancy terms for a familiar idea: how sensitive options are to their inputs
Options Theory
Options Theory
Moontower on Gamma
The first option greek people learn after delta is gamma. Recall that delta represents how much an option’s price changes with respect to share price.
Options Theory
If You Make Money Every Day, You’re Not Maximizing
A treatise on hedging
Options Theory
There’s Gold In Them Thar Tails: Part 2
Part 2 of selecting outcomes from the tails of a distribution
Options Theory
There’s Gold In Them Thar Tails: Part 1
Selection from strictly narrowed criteria
Options Theory
What Part Of Selling Calls Is “Income”?
Trading any option requires a view on volatility
Risk and Edge
Solving A Compounding Riddle With Black-Scholes
A puzzle that demonstrates why option models assume lognormal distributions
Options Theory
Selling Calls: It Might Be Passive, But It Ain’t Income
The premium you receive for writing calls is not passive income but compensation for risk
Options Theory
Dispersion Trading For The Uninitiated
A gentle introduction to trading implied index correlation
Options Theory
The Monty Hall Problem Is More Than A Game
Real-life application of the Monty Hall conditional probability problem
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 Theory
Portfolio Theory And The Invisible Option On Hobbies
Portfolio theory is a portable idea to other parts of life
Options Theory
Jensen’s Inequality As An Intuition Tool
Practice in distinguishing linear vs non-linear phenomena
Options Theory
Option Lenses
The importance of looking at options comparatively
Options Theory
Understanding Vega Risk
Learn how option prices depend on changes in implied volatility
Options Theory
Berkson’s Paradox
Why correlations breakdown in the presence of "range restriction"