Path: How Compounding Alters Return Distributions
See how the path of returns can alter the distribution of p/l independently of expectancy.
Lessons From The Layup – Corner 3 Spread
Practice relative value thinking
Mock Trading Options With Market Makers
How professional option traders trained
Fun Analogy Between Combinations and a Correlation Matrix
Math fun relating ideas
Where Does Convexity Come From?
Convexity is a fancy word for "my position size is not constant"
Why You Don’t Get Paid For Diversifiable Risks
Examples of a counterintuitive aspect of portfolio theory
How Tails Constrain Investment Allocations
How low probability-events restrict advisable position sizes
Your Portfolio Intuition Is Poor
Our instincts about the role of correlation are not well-tuned
Percents Are Tricky
Possible pitfalls of thinking in percents with ratios
Levered ETF/ETN tool
Compute the amount of dollars required to rebalance a levered exposure
The difficulty with shorting and inverse positions
The brutal arithmetic behind shorting
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