Risk and Edge
From CAPM To Hedging
CAPM can help us compute hedge ratios and estimate "idio" risk
Risk and Edge
Risk and Edge
Solving A Compounding Riddle With Black-Scholes
A puzzle that demonstrates why option models assume lognormal distributions
Risk and Edge
I Felt Bad For Picking My 3rd Grader Off
On quarantining risk by reducing dependencies
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
Risk and Edge
Talking To The Diamond Hands
Understanding the psychology of concentrated risk-taking
How Markets Work
Shorting In The Time Of ShitCos
A qualitative appreciation for the asymmetry of shorting
How Markets Work
Understanding Edge
The foundation of all trading
Options Theory
On Delta Hedging
The broad trade-offs when trying to isolate volatility bets
Risk and Edge
Measurement Not Prediction
Seeing the present clearly
Risk and Edge
The ‘Volatility Is A Risk’ Strawman
Risk is more than a single measure
Risk and Edge
How Much Extra Return Should You Demand For Illiquidity?
A market-based thought exercise for pricing the value of liquidity
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.
Risk and Edge
Lessons From The Layup – Corner 3 Spread
Practice relative value thinking
Options Theory
Mock Trading Options With Market Makers
How professional option traders trained
Risk and Edge
Fun Analogy Between Combinations and a Correlation Matrix
Math fun relating ideas