What The Widowmaker Can Teach Us About Trade Prospecting And Fool’s Gold
How an option market decomposes probability from expectancy
A Cleaner Dashboard: Z-Scores Instead Of Price Changes
Use volatility-aware price changes for more context in your dashboards
Understanding Vega Risk
Learn how option prices depend on changes in implied volatility
On Delta Hedging
The broad trade-offs when trying to isolate volatility bets
Structuring Directional Option Trades
Options allow us to express bets on the distribution of the underlying instead of just "will the stock go up or down?"
How Options Confuse Directional Traders
How you can be right on direction and still wrong
Path: How Compounding Alters Return Distributions
See how the path of returns can alter the distribution of p/l independently of expectancy.
Binary Straddle Example Based On The 2016 Election
When an outcome is binary with an implied probability, the straddle will tell you the expected move in either direction
Finding Vol Convexity
See how out-of-the-money options have non-linear responses to changes in implied volatility
Why Options Trades Focus on Vega
The most important greek for long-dated options
The Volatility Drain
The arithmetic behind how increased volatility reduces average compounded returns
Levered ETF/ETN tool
Compute the amount of dollars required to rebalance a levered exposure
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