I’m a Daddy

June 1, 2012

Suppose we assessed the human experience from a statistical point of view. The spectrum of events comprising one’s life might be organized into categories ranging from horribly tragic to epically happy.  The sum total of all events plotted on an x-y axis would form a bell curve of sorts with the majority of experiences falling [...]

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The Sword of Excessive Observation

May 21, 2012
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Given our emotional makeup the name of the trading game for the majority of participants is protecting themselves from themselves.  Developing a trading plan with rules can help sidestep self-sabotage.  Think of it as building a bridge over the emotional quagmire that has claimed a multitude of careless traders in days past. One of the [...]

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What The Avengers Taught Me About Trading

May 15, 2012
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Along with seemingly every other person on the planet I headed out last weekend to view the much anticipated Avengers movie. While I wasn’t excited enough to don my Captain America suit and shield, I did convince the wife to join me in the superhero revelry.  To the movie’s credit she enjoyed the storyline and [...]

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The High Wire Act

May 10, 2012
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This article was originally posted at InvestorPlace Many neophyte option traders become unsuspecting victims to Gamma’s wily ways.  While these profit seekers are well-intentioned, their ignorance can prove costly particularly close to expiration.  Let’s just say the last few weeks leading up to expiration are when Gamma really takes hold and begins to play with [...]

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Who ‘Likes’ the Current Selloff?

May 7, 2012
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Views on volatility vary across the spectrum.  The lion’s share of long-biased investors quickly associate the “V” word with shocks to their emotional psyche and otherwise painful financial drawdowns.  Volatility has long since been lumped into a rather unsavory group of lepers and plagues that are altogether shunned by the masses.  Rather than flying solo, [...]

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The Cause of My Blogging Hibernation

April 26, 2012
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I’ve received a couple inquiries regarding my absence in the blogosphere of late and wanted to offer up a brief update. I’m sitting for the level II CMT exam next Saturday so my time has been spent with my nose in a score of Technical Analysis tomes in an attempt to internalize the finer nuances [...]

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Bond Bears Thwarted by Equity Weakness

April 12, 2012

Pretty price patterns can be hypnotizing.  Their subtle sexiness can lure you in and convince even the skeptical spectator that the elusive “sure thing” has been discovered.  Unfortunately, the poor saps that fall into this trap usually end up having their hearts ripped out for confusing a high probability setup with an infallible one. And, [...]

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The Theta Thief

April 10, 2012
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It’s not uncommon for discussions on the option Greeks to border on the mundane. A discourse replete with facts and figures runs the risk of becoming forgetful to the reader. Sometimes the behavior of the ever-important Greeks are best illustrated with a story.  Consider the following parable of the Theta Thief. Though the lifespan of [...]

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Beware the Broad Brush

April 2, 2012
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Painting with a broad brush maybe appropriate when discussing things of a homogeneous nature like, say, all the black honey badgers in Africa.  When it comes to a heterogeneous mishmash of items, however, wielding the broad brush can lead to a number of erroneous characterizations. Today’s thoughts are inspired in part by a recent comment [...]

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The Notoriously Difficult Straddle Play

March 27, 2012

Recent action in AMZN provides a prime example of the risk-reward payoff for the notoriously difficult long straddle play.  In an attempt to attract others to their ranks, straddle acolytes possess a number of seductive, yet slightly misleading, tag lines.  Take the following for instance: “You win whether the stock moves up or down!” The [...]

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