Options
Long Options Payoff Profiles
In this article, we explore the payoff to holding long options positions. Read the previous parts of this 101 series
Blog
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OptionsThe Value of an Option at Expiration
Read the previous parts of this 101 series on options: Options have value because the future is uncertain. One thing
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Options
Options 101: Understanding the Basics of Financial Options
In the previous article, we discussed what makes an option valuable. At its core, an option is about choice—the choice
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OptionsThink like a traderOptions are just options – Why are they valuable?
Financial options contracts are really just options. That is, they give us a choice or an option to do something. We’ll go through a
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Think like a traderFinding Edges: The Importance of Being a Pirate
In much of life, success results from doing what other people expect you to be doing. You get top marks
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Data analysisR
Revisiting Overnight vs Intraday Equity Returns
Back in May 2020, in the eye of the Covid storm, we looked at overnight vs intraday returns in US
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Think like a trader
Trading 101: Understanding the Expected Value of Uncertain Bets
Industry veterans sometimes remark that successful gamblers tend to make good traders, and engineers tend to make lousy traders. This
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Think like a trader
On Having an Edge
The first thing you need as a trader is a clear edge. What do I mean by “edge?” Edge comes
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FactorsOptionsTrading strategies
Options Trading with Cross-Sectional Volatility Factors
A few years ago, I got deep into the idea of constructing a long/short equity options portfolio based on the
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OptionsThink like a trader
Rules of Thumb for Trading Equity Options
If you trade liquid stocks or futures contracts, the first thing you will notice about equity options trading is that
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DataRTime series modelling
A Simple Trick for Dealing with Overlapping Data
Last week, we looked at simple data analysis techniques to test for persistence. But we only looked at a feature
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Data analysis
How to Test the Assumption of Persistence
An assumption we often make in trading research is that the future will be at least a little like the
