Money Math

appreciating diversification

This week, I hosted class #4 of the Investment Beginnings for local kids aged 12+. The series’ materials are here: https://notion.moontowermeta.com/investment-beginnings-course This…

1 day ago

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…

2 days 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 week 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…

2 weeks ago

how to get arbed with perfect information

The “Bridge of Asses” 📺Option Pricing Explained: No Arbitrage + Financial Mathematics from a Quant | 52 min watch Doug Costa (SIG…

2 weeks ago

N² – n: why shorting is mathematically cursed

Recall the levered silver flows post where we see the quick math of levered ETFs. For a fund to maintain its mandated…

3 weeks ago

not all averages are created equal

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

4 weeks 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 weeks 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…

2 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…

2 months ago