Money Math

Using Options Better

While a successful volatility trader’s edge is in discerning relative value between options, they are agnostic on the direction of…

2 years ago

Index Investing: The Nature of the Proposition

When a friend asks me what I think of investing in the SP500 I have a standard answer: It’s a…

2 years ago

Growth rate = 70% * (doublings/years)

Friends, I saw this chart on LinkedIn and the call of mental math immediately lured me onto the rocks. Since…

2 years ago

Nah…you just ain’t seein’ the ball

When I hear someone mope “the market doesn’t care about fundamentals” I change the channel. Market prices are a collection…

2 years ago

If you annualize volatility with 252 days can you use that number in a 365-day option model?

A Moontower reader asked a question that gets into one of the most confusing topics for option traders: If I'm…

2 years ago

A Visual Primer For Understanding Options

Note: This is a guest post by @KeyPaganRush. You can find the origin of this collaboration here.   If you’re…

2 years ago

Career Advice For Quants

I added an outstanding post to the top of the Moontowerquant Career section. Version with my emphasis: 🔗Buy-Side Quant Job Advice…

2 years ago

Kelly Math Weirdness

We started talking about Kelly criterion a couple weeks ago. As you play with the ideas yourself, I’ll point out 2…

2 years ago

Getting Comfortable With Log Charts

In Sunday’s Getting Paid To Flip Million Dollar Coins, I mentioned that exponential functions such as investment compounding are best displayed…

2 years ago

Getting Paid To Flip Million Dollar Coins

A foolproof way to get engagement is post this thing on Twitter every couple months. Sometimes my mood is to…

2 years ago