Roulette and the Stock Market
Years ago I was watching the action around an Atlantic City roulette table when I noticed a man taking careful notes. When I asked what...
Author : Six Figure Investing
If There’s Liquidity It’s Not A Short Squeeze
I’m seeing a lot of articles (e.g., here and here) warning about a possible short squeeze in volatility. At the risk of being a curmudgeon,...
Scaling the Sharpe & Sortino Ratios For Daily Returns
The Sharpe Ratio is one of the more popular ways to evaluate an investment for risk as well as for returns. Assessing the risk of...
Software & Stock Exchanges—Not Skynet Yet
A week after the Nasdaq’s 3 hour shutdown in August 2013 the exchange published Preliminary Findings on the outage. I’ve extracted some sentences: On August...
SPXH—Hedging the S&P 500 For Free?
The holy grail of investing is achieving high growth with low risk. Practical strategies mix different types of investments in the hope/expectation that losses in...
Hedging the S&P 500 For Free?
The holy grail of investing is achieving high growth with low risk. Practical strategies mix different types of investments in the hope/expectation that losses in...
Earn 2%-3% Per Week Trading Options? The Catch…
If you do any amount of browsing on stocks and options you’ve seen ads for services that tout weekly percentage gains of several percent. I’ve...
Calculating VIX—the Easy Part
The movements of the CBOE’s VIX® are often confusing. It usually moves the opposite direction of the S&P 500 but not always. On Fridays the...
A Tale of Two Bulls
The prices of SPY (S&P 500) starting in March of 2003 and of 2009 have tracked each other surprisingly well over a 6 year period. ...
How Does VXX Work?
VXX and its sister fund VXZ were the first Exchange Traded Notes (ETNs) available for volatility trading in the USA. To have a good understanding...