Options Riddle
Using vertical spread to compute OTM option value in your head
Our thinking on options, trading, investing.
Using vertical spread to compute OTM option value in your head
The basics
Part 1 on term structures
One of our pro subs sent us a note this weekend: Subscriber update: I’ve had a really successful first month with my moontower built trades. I’ve just been buying cheap vol verticals and diagonals, time spreads and selling expensive credit spreads, fine-tuning with the skew screen, playing the macro uptrend. Been helping me see the surface better, especially because never knew how to look at the surface before. Same with skew. This is my novice approach (8 year experience, retail). Thanks f
computing portfolio vol
A follow up on derivative "income" ETFs
Q32024
A follow up to JEPI competitors
on the popular wave of option etfs
stopping time problems
honest attribution
Learning about commodity futures
a rebalance trade idea for my portfolio
This post starts with a response to a reader question but leads to a deeper question
How realized volatility depends on sampling frequency
Options, volatility, and risk — written by traders, delivered when we publish.