Percents Are Tricky
Possible pitfalls of thinking in percents with ratios
Our thinking on options, trading, investing.
Possible pitfalls of thinking in percents with ratios
The arithmetic behind how increased volatility reduces average compounded returns
What high prices beg for
Compute the amount of dollars required to rebalance a levered exposure
The brutal arithmetic behind shorting
Leases are options with an embedded cost of carry
Options, volatility, and risk — written by traders, delivered when we publish.