The Money Angle

why selling an option because the “stock will never get there” is amateur vol thinking

In stepping through an oil put trade, I wrote: “As a junior trader I remember selling calls because "it'll never…

2 years ago

translating to “option surface” language

This is a useful practice: Translate your sentiment into “option surface” language For example, a reasonable posture right now is…

2 years ago

adverse selection in the option job market

Friends, Today I’m going to both be a student and speaker at Ricki Heicklen’s Quantitative Bootcamp in Berkeley. Ricki is…

2 years ago

the option market’s point spread

This is Part I of a discussion of VRP The volatility risk premium (VRP) is the notion that options are…

2 years ago

stepping through an oil put option trade

Back on Oct 17th, I sold Z24 WTI (oil) 67 strike puts unhedged. I explained my reasoning in this thread back when…

2 years ago

“negatively priced lunch”

Markku Kurtti is an engineer in the telecom world. His outsider quant take on portfolio construction is beautifully derived and…

2 years ago

ETF slop

On the investing front there is an absolute explosion of new ETFs being listed every month. Dave Nadig gave a…

2 years ago

The “world’s worst time traveler” investing style

https://www.tiktok.com/@lastoneslaughing/video/7331108207458340139?embed_source=121374463%2C121468991%2C121439635%2C121433650%2C121404359%2C121351166%2C121331973%2C120811592%2C120810756%3Bnull%3Bembed_pause_share&refer=embed&referer_url=cdn.iframe.ly%2Fapi%2Fiframe%3Fmedia%3D1%26app%3D1%26url%3Dhttps%253A%252F%252Fwww.tiktok.com%252F%2540lastoneslaughing%252Fvideo%252F7331108207458340139%26key%3De27c740634285c9ddc20db64f73358dd&referer_video_id=7331108207458340139   I’m going to share 2 studies, one new and one old that say something that is counterintuitive to…

2 years ago

Volatility term structure from multiple angles (part 2)

In part 1 of Volatility term structure from multiple angles we opened by discussing how nearer dated implied vols move around more than deferred…

2 years ago

Options Riddle

I saw a familiar type of riddle on Twitter that was directed at fundamental PMs. I gave a lazy answer and later…

2 years ago