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Nov 20, 2024

insights from a moontower.ai user

I had a long chat with a user who’s been trading as a primary means of income for over a decade. I was deeply impressed to watch how this individual followed the recipe we lay out in The Moontower Mission Plan while incorporating their own spice. How they combine “volatility lens” with “directional bias” 1. Uses the Dashboard to find a name and term where the volatility stands out as cheap or expensive 2. Then checks if the stock is near an extreme (using technical indicators they’ve tuned o

Nov 19, 2024

The Most Underappreciated Aspect of Trading

A little experiment — talking into a camera instead of writing. The topic… “the most underappreciated aspect of trading” A rough script The Most Underappreciated Aspect of Trading In the world of trading and investing, there’s a lot of talk about modeling and methods and all kinds of geekery. This is all well and good. If you read Moontower, you’ll see plenty of that stuff. But I want to talk about the most underappreciated aspect of trading today. Before we get to that, think about wh

Nov 14, 2024·Options and Volatility

the option market's point spread (part 2)

multiple VRPs

Nov 13, 2024·How Markets Work

case study on becoming a partner at a trading firm

a trading journey

Nov 10, 2024·Options and Volatility

why selling an option because the “stock will never get there” is amateur vol thinking

a topic that takes a long time to grok

Nov 10, 2024·Options and Volatility

translating to “option surface” language

Translate your sentiment into “option surface” language

Nov 7, 2024·How Markets Work

adverse selection in the option job market

thoughts for professional option traders on the job market

Nov 7, 2024·Options and Volatility

the option market's point spread

Part I of a discussion of VRP

Nov 3, 2024·Options and Volatility

stepping through an oil put option trade

the thinking, experience, and pst-mortem of an oil option trade

Oct 30, 2024·Options and Volatility

THE book for retail option traders

Foreword to Euan Sinclair and Andrew Mack's latest

Oct 27, 2024·Risk and Edge

"negatively priced lunch"

diversification

Oct 27, 2024·How Markets Work

ETF slop

ETFs for everything

Oct 20, 2024·Risk and Edge

The “world’s worst time traveler” investing style

Even if you know the future investing is hard

Oct 17, 2024·Options and Volatility

Options are ALWAYS about vol

Lots of fun stuff to learn today about options. Jumping right in. GLD and USO On the weekend of August 18th I pointed out that GLD ATM vol looked expensive as of the close on August 16th. I wrote about the setup and the performance after a week in the following posts respectively: Flash post on GLD vol (8/8/24) how many coin flips until your goal? (8/25/24) I did not put anything on myself as I prefer to stick to trades where my vol lens and directional bias overlap. I have no opinion on go

Oct 17, 2024·Options and Volatility

Volatility term structure from multiple angles (part 2)

Term Structure part 2

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