The Money Angle

calendar spreads through the eyes of a vol trader

I got long IBIT (BTC etf) when my April calls expired ITM. IBIT continued rallying, I was happy to stay…

8 months ago

Betting on PLTR to $40

Notable short seller Andrew Left’s firm Citron Research gave his “all roads lead to $40” pronouncement on X this week regarding PLTR 2.90%↑ : Created…

9 months ago

timing the market

In the discord, I was asked a good question that’s lingered for me. I’ll share the fuller response here but…

9 months ago

Vol drag is misunderstood…until now

Yesterday, we (yet again) discussed the topic of how vol drag affects the skewness of a return distribution. In particular…

9 months ago

Sparring with AI: Theoretical options p/l vs discrete hedging

A conversation with Claude Opus 4 KA: What is the compact formula for daily option pl that relates realized variance…

9 months ago

“Turds float to the top before a flush”

One of the first lessons I learned in trading is how the tip of the information spear is the futures…

9 months ago

Why meme stock put spreads look expensive

I got words today tying back practically to Sunday’s Money Angle about the relationship of vol to stock distributions. It’s…

9 months ago

The 80/20 hack for risk-adjusting a return

In the ELI5 vid published this week, I explained how the options market provides a rich understanding of a stock’s distribution…

10 months ago

kids as market-makers

During Cousins Camp this week, I taught the kids a fun trading game. Each kid has a private number that…

10 months ago

using elementary school geometry to explain gamma

In options land, you constantly hear the returns are “non-linear”, “convex”, or maybe even “have curvature”. It comes from the…

10 months ago