Last week, in part 1, we backfilled prerequisite knowledge:
1. Distance in return space: equal percentage moves aren’t equal in compounded or log space
2. Vol bonus vs vol tax: trend and chop change the distribution of a levered asset
3. Derivatives-on-derivatives: options on the underlying ETF are inputs into pricing options on the levered ETF.
4. Vega convexity: OTM options have “vol gamma” or volga which makes their sensitivity or vol changes vary depending on the IV level. This is not t
“They” say human labor will be irrelevant by 2027. By then, any business you can think will be solved by capital (electricity and tokens) before you brush your teeth in the morning.
You either get rich in the next year or join the permanent underclass.
So we aren’t shocked that the hottest fads in investing is pure return fuel:
* double, triple, even 5x levered ETFs
* options (record volumes, with nearly 2/3 of SPX options in 0DTEs!)
You’re not gonna break outta that underclass clipping 10
key differences between retail and institutional traders
the "system 2" reaction to a proposition
stubborn assumptions die hard
proving diversification is a free lunch
How parallel coordinates turn four volatility metrics into actionable trade structures
Jeff Yass on prediction markets
every industry has its challenges
law of one price in action
things to watch for in option chains
the basis of arbitrage and vol surface modeling
