Options Theory
Dispersion Trading For The Uninitiated
A gentle introduction to trading implied index correlation
Options Theory
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"
Options Theory
Interview Questions A Market Maker Gave Me in 1999
A focus on basic probability
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 Theory
Straddles, Volatility, and Win Rates
If you sell fairly priced straddles you win more often than you lose, but the expectancy is zero. Find out why.
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 Theory
You Can Mock Trade With A Deck Of Cards
Card games used in training
Options Theory
Mock Trading Options With Market Makers
How professional option traders trained
Options and Volatility
Finding Vol Convexity
See how out-of-the-money options have non-linear responses to changes in implied volatility