The Money Angle

not all averages are created equal

What did we notice? a * b = Mean² − MAD² (where MAD = mean absolute deviation) As soon as…

4 months ago

From Text ➡️ Dashboards

We’ll start with some useful resources for the learners, then move to material for traders ready to do stuff. CME…

4 months ago

vega’s finishing move

“Vega wounds, gamma kills” is an esoteric expression that’s still common enough that you can google it and return a…

4 months ago

trading as a sudoku puzzle with prices as the given numbers

Trailing 1-year inflation per the CPI index has been ~2.5% Prompt CME gasoline futures (RBOB) are up 80% this year…

4 months ago

a market-making project you can do today

Friends, I tweeted something the other day that I want to expand on because it’s one of those ideas that’s…

4 months ago

approximating gamma in your head

By now y’all know option traders have the ATM straddle approximation burned into their retina: straddle ≈ .8 Sσ √T…

4 months ago

oil options and the raw gamma paradox

The single biggest adjustment to get my head around when I crossed the chasm from equity options trading to commodity…

4 months ago

Example of “measurement not prediction” in the wild

A reader replied enthusiastically to my 2-week-old post when logic and proportion have fallen sloppy dead giving me credit for calling that…

5 months ago

the math of investing

As I’ve shared here before, I spun up an investing class for middle and high school kids locally. I am…

5 months ago

the moontower bridge

I sent this to our moontower.ai list this week: If you run a trading or investment book that uses options…

5 months ago