Newsletter Thoughts

how a high implied vol can be cheap

EWY, the South Korea ETF, was an interesting source of disagreement in our Discord about whether the vol was expensive…

1 month ago

hard earned trading wisdom

Euan Sinclair needs no introduction from me. I’ll cut straight to the gold. He’s been a repeat guest on Erik’s…

1 month ago

options policework

A moontower user sent this [paraphrased] message in our Discord the morning of Jan 9th: NLR [VanEck Uranium and Nuclear ETF] had…

1 month ago

Positive delta puts in the wild: Avis stock (CAR)

Remember that chart of CAR last week. (Matt Levine wrote about the fundamentals of the squeeze on 4/15) So this was Thursday:…

1 month ago

“broken window theory” only applies to blue-collar crime

At least once a day, I think about how the staunchest supporters of “broken window theory” must think it only…

1 month ago

the “obvious error” rule

From @buccocapital on Anthropic CEO’s insistence that AI is going to wipe out 50% of jobs. Bingo. The “we gave you our…

1 month ago

Moontower #312

In this issue: obvious error rule broken window theory why home prices aren’t going to crash put options on CAR…

1 month ago

creation and extraction

I’ll open with a thought that could probably just be a tweet on the limitation of markets. I forget where…

1 month ago

Moontower #311

In this issue: AI leaves the hardest problems to humans The triggering implication of arbitrage theory options rapid fire Nine…

1 month ago

the bias of hedging on implied delta

Tweets Before we get to today’s meat, here are 2 threads spurred by oil’s advance yesterday.   Delta is God…

1 month ago