Money Math

Teach A Math Idea To Internalize It

My 8-year-old Zak is going to be taking the OLSAT soon. It’s a 64-question test that looks an awful lot…

5 years ago

Understanding Vega Risk

In a chat with an options novice, they told me they didn't want to take vol (vega) risk so they…

5 years ago

Shorting In The Time Of ShitCos

HTZG, GME, now HWIN.  The more slandered or shorted or ridiculous the name is the more bullish it seems to…

5 years ago

Understanding Edge

In my indoctrination into trading, the term "edge" was equated to the bookie's "vig" or a casino's "house edge". This…

5 years ago

Interview Questions A Market Maker Gave Me in 1999

SIG is well known for asking probability questions to filter trainees. This is not surprising. They view option theory as…

5 years ago

Option Theory As A Pillar Of Decision-Making

Understanding Options and Decision-Making (Thread) @HideNotSlideIn an old Barron's Roundtable, Jeff Yass, the founder of SIG had strong words about how fundamental…

5 years ago

Structuring Directional Option Trades

This post is a response to Twitter buddy @demonetizedblog Let me take a stab at a "process" answer. Introduction For…

5 years ago

The Moontower Quant Codex

Many beginners to options ask me and other professionals what they should read to learn options. I've seen this question…

5 years ago

A Former Market Maker’s Perception of PFOF

It feels like payment for order flow controversies flare up every few years. When I see some of the takes…

5 years ago

How Options Confuse Directional Traders

2017 was a historically low-vol year, rewarding options sellers despite selling lower option premiums as the year progressed. Like they…

5 years ago