The Money Angle

when we realized our deltas were wrong

In Thursday’s paid subs post, embedding spot-vol correlation in option deltas, I buried this story but I thought worth sharing since it’s…

10 months ago

Earnings IV Glide Paths

I want to expand briefly on Wednesday’s HOOD: A Case Study in “Renting the Straddle” because HOOD’s implied volatility that contains earnings…

10 months ago

HOOD: A Case Study in “Renting the Straddle”

On Monday, I noticed that Robinhood ($HOOD) vol screened cheap in the Trade Ideas tool. But that tool uses 30-day constant maturity…

10 months ago

Pricing 0dte’s

On the last day of November, Kevin bought a bunch of cheap SPY options about 10 minutes to the close and scored.…

10 months ago

The Coastline Paradox in Financial Markets

I started researching/writing this post about a month ago. It took a strange arc. It began with me wondering about…

11 months ago

Positive delta puts

Yesterday in “trader” is a uselessly broad term, I boosted several of Euan Sinclair’s insights about option trading. I saved one…

11 months ago

Moontower Binomial Tree Explainer

Last week, in American options are not vanilla, we covered not only the concept of early exercise for American options, but…

11 months ago

American options are not vanilla

I’ve always found it amusing that the most commonly traded options, American-style equity options contracts, are considered “vanilla”. Because they…

11 months ago

“markets vs democracies” in the wild

On Nov 26th, Imran asked his followers would what more likely to double in the next year — gold or…

11 months ago

Prediction Market Arbitrage: Using Option Chains to Find Mispriced Bets

Horse tweeted: The moment you see a bet on a platform like Kalshi, Polymarket, or the soon-to-be Robinhood+SIG exchange, your…

12 months ago