While our exchange students bid us farewell yesterday, this week, much of my east coast fam is visiting to celebrate a cousin’s wedding in Napa. It’s a nice season to get married. In fact, Yinh and I celebrated 16 years on October 2nd 🙂 I mentioned my wife’s pet project about money matters. As you … Continue reading Do my wife and I have separate accounts and other personal money questions→ The post Do my wife and I have separate accounts and other personal money questions appear...| Party at the Moontower
Most people who get into options are seduced by levered returns, but for the relationship to go from a fling to the real thing, they commit to learning about “vol”: implied vol, realized vol, vol surfaces. I’ve declared that options are ALWAYS about vol. This is snobbery to the same degree as reserving “champagne” for sparkling … Continue reading the easiest win in options is for stock traders→ The post the easiest win in options is for stock traders appeared first on Party at ...| Party at the Moontower
I referenced one of Kevin’s articles about funding trades in Thursday’s letter. I have several of Kevin’s tweets saved. This one is a counterintuitive argument for why the stock’s left tail is probably smaller than you think. In a June 9th tweet, Kevin considers one of ASTS insider sales: Scott W sold 50k shares today. Here are … Continue reading Insider selling that’s…bullish?→ The post Insider selling that’s…bullish? appeared first on Party at the Moontower.| Party at the Moontower
Yet another vibe-code project. This one went viral because…it’s a game! It’s a replica of the one we trained on an eon ago at SIG. It’s a put-call parity game. The formula for put/call parity is: C = (S - K) + P + RC where: C = call value P = put value S … Continue reading Learn put/call parity with this free game→ The post Learn put/call parity with this free game appeared first on Party at the Moontower.| Party at the Moontower
I used a pattern to explain it to my 12-year-old on our car ride on Monday. Start with: 8*8 = 64 Let’s call that a * b It feels like if we subtract 1 from a and add 1 to b multipy it should be close to 64 7*9 = 63 Close but a tad lower. What if we keep … Continue reading how I explained vol drag to a 12-year-old →| Party at the Moontower
Notable short seller Andrew Left’s firm Citron Research gave his “all roads lead to $40” pronouncement on X this week regarding PLTR 2.90%↑ : Created with TradingView Give Palantir the same $100 billion valuation that Databricks just earned. Where does that put the stock? $40. The exact same math we saw when comparing Palantir to OpenAI. Tyler pinged me before the stock dove … Continue reading Betting on PLTR to $40 →| Party at the Moontower
A conversation with Claude Opus 4 KA: What is the compact formula for daily option pl that relates realized variance – implied variance? The compact formula for daily option P&L that relates realized variance to implied variance is: Daily P&L ≈ ½ × Vega × (σ²_realized – σ²_implied) × Δt Where: Vega = option’s vega … Continue reading Sparring with AI: Theoretical options p/l vs discrete hedging →| Party at the Moontower
