Dynamic Hedging & Option P/L Decomposition
Plus some realized vol trickery
Education
Moontower Blog
Our thinking on options, trading, investing.
why home prices could fall with mortgage rates
understanding how your home equity changes when mortgage rates spike
understanding the realized vol portion of option p/l
isolating realized vol p/l
Connecting Vol Surfaces To Option P/L
Delta-neutrality, sticky strike vs sticky delta and more...
a deeper understanding of vertical spreads
This is part 2 of “building an options chain in your head”
The “grammar” of trading with SIG’s Todd Simkin
Learning trading with SIG's Todd Simkin
“This was a vol event”
The August 2024 VIX tantrum
building an option chain in your head (part 1)
On my way to Portugal, I was stuck on a plane with no internet and was thinking about hedging downside market exposure. You know, like you do when you’re stuck on a plane. I know vols are in the toilet and to use a phrase from option broker Dean Curnutt — “buy umbrellas when the sun is shining”. It probably didn’t help that I also nodded along to Alexander’s post Time to Hedge? Choosing the specific hedge is a fingertip exercise in looking at the metrics (the whole raison d'etre for moontower.
A Jane Street Alum Teaches Trading
How the Smart Money Teaches Trading with Ricki Heicklen
Option Analytics For All
Option surfaces as a unique source of market intel
Mr. My Way
Sports gambling and a book rec
Probability Matching In Nature
A wild phenomena
Learn Probability
Probability resources
Options trading as a widget factory
Edge Functions: the hurdle for a trader's unit economics
Weighting An Options Pair Trade
Theta vs vega weighting
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Options, volatility, and risk — written by traders, delivered when we publish.