Money Math

Learn Probability

Dave is a quant at Paradigm. He asked: https://x.com/_Dave__White_/status/1811557747659538823 The thread is full of recs. I mentioned David Sklansky whose books…

2 years ago

Ratio’d

Last week in Breakpoints, the discussion was about measuring implied skew. A common measure and the one we use in moontower.ai…

2 years ago

Breakpoints

I caught David Boole’s segment about GME on CNBC because it was on Twitter. David used to cover me back when I…

2 years ago

Narrating An Option Trade

I’ve been narrating my small GME trade this week through this substack and twitter. On Friday I rolled my short…

2 years ago

When it’s normal to have no idea what your returns are

The lingua franca of asset management regardless of strategy is returns. But this is not necessarily true in trading. In my…

2 years ago

a birdie asked how to model a 1-day option

It’s going to shock you to hear it, but I get emailed a lot of option questions. I’ve gotten some…

2 years ago

What Equity Option Traders Can Learn From Commodity Options

GME share price started the month around $11. On Friday May 10th, it closed $17.46. Monday it was about 80%…

2 years ago

Weighting An Options Pair Trade

An option trader pinged me about a trade between a correlated pair of names whose IV ratio was trading at…

2 years ago

“Renting A Straddle”

This week, moontower.ai announced several free option calculators with more to follow. 💡These are embeddable so you can add them to your…

2 years ago

When Car Leases Offer Options For Less Than Zero

Car leases are said to be “an option to buy”. Put-call parity is the most important concept to understand about financial options.…

2 years ago