The Israeli SpeculatorThe Israeli SpeculatorThe blog for the rational and skeptic investor. Philosophies about investing and trading NOT about lame techinques that work for no one. This is not your typical investing blog Articles
Simple Stop-Loss Strategy That Does NOT Work
2007-06-12 13:22:00 In dealing with option trading, one often tries to find clever ways to beat the system. One which admittedly looks very promising, is the following: Let’s say we are interested in writing a call option at a strike price of 100 for some stock. In order to hedge our risk, we decide to buy 1 ... More About: Strategy , Work , Stop , Loss , Simple
Developing a Trading System
2007-06-08 19:14:00 Hey guys, I am currently a little bit busy on developing a trading system and checking to see if it can be useful to my trading. It is pretty hard to do so because there is not much information out there because as you might suspect, people make money out of it so no ... More About: System , Trading , Topic , Ping , Develop
Why I Stress The Efficient Market Hypothesis
2007-06-06 15:58:00 In all the blogs about trading and investing, I rarely see a discussion about the Efficient Mark et Hypothesis. The reason I’m always bringing it up is only because knowing what an efficient market means can help you make better trading decisions. Here is an example from a forum I used to participate in, about an ... More About: Stress , Tres
A Guide For Beginners
2007-06-05 17:21:00 Hey guys, I wrote an investing and trading guide for beginners which would also prove useful I think to more advanced traders and investors. Check it out here. If you find it useful, let me know. I’ll keep adding to it things to make it more complete. On a different note, I’ll start adding market ... More About: Guide , Topic , Guid
The Volatility Smile
2007-06-03 19:27:00 This post discusses what is the volatility smile and why should you care as a trader about it. I’ll keep it as simple as possible in order not to get into technicalities which won’t add anything to the understanding of the subject anyway. Black and Schole’s World If we consider the Black and Scholes’ world, we ... More About: Smile , Black Scholes , The V
The Right Mindset For The Option Trader
2007-05-31 18:05:00 The hardest thing for an option trader (or investor) is to change is mindset from an emotional one to a more productive logical one. When I started option trading and although I come from a mathematical background, the hardest thing was to think for the long run, not the short run. I wanted to be ... More About: Mindset , Opti , The O
The Variance Ratio Method - a Powerful Trend Indicator
2007-05-30 08:18:00 In the last post, I discussed the use of the Parkinson number as an indicator. In this post I will discuss a simple trend indicator you can use. Please read my volatility estimation post before attempting to read this post so it would make sense. Background In one of my posts, I discussed the method of sampling ... More About: Varia , Indicator , Trend , The V , Method
How To Estimate Volatility - Importance For The Option Trader - Part I
2007-05-28 21:02:00 One of the most important tools for the option trader are the Parkinson number and the Variance Ratio Method. The Parkinson number, named after physicist Michael Parkinson, is an estimator of the volatility of returns presupposing that returns follow a geometric random walk (If that last bit doesn’t tell you anything, don’t worry). If you take ... More About: Part , Opti , Import , The O
The Most Bang For The Buck Technique With Options
2007-05-27 09:28:00 In option trading, there are several basic techniques a trader should be aware of. Suppose you are convinced, with either a Technical Analysis method or whatever method you have under your sleeve, that a certain stock is about to rise in value. What can you do? The Most Bang For The Buck technique will basically ... More About: Technique , Options , Ique
Five Option Trading Techniques You Can Use RIGHT NOW To Make Money
2007-05-25 00:00:00 This post is a reminder of some of the most effective option trading techniques that had worked best for me. If you are not doing these, then I suggest you read this post. Please note that these techniques work if you only use them correctly. So make the effort to learn and practice before you ... More About: Money , Make Money , Trading , Make , Ique
Five Option Trading Techniques You Can Use RIGHT NOW To Make Money
2007-05-24 08:20:00 This post is a reminder of some of the most effective option trading techniques that had worked best for me. If you are not doing these, then I suggest you read this post. Please note that these techniques work if you only use them correctly. So make the effort to learn and practice before you ... More About: Money , Make Money , Trading , Make , Ique
Black and Scholes Calculator And Visualization
2007-05-23 17:21:00 I had noticed that it is hard to count on the financial websites to give you accurate prices for the Black and Scholes option price. This can be crucial if you are counting on it to perform some kind of arbitrage with perfect replication. For your convenience, I had put a small program to compute ... More About: Calculator , Visualization , Hole
Black and Scholes Calculator And Visualization
2007-05-23 00:00:00 I had noticed that it is hard to count on the financial websites to give you accurate prices for the Black and Scholes option price. This can be crucial if you are counting on it to perform some kind of arbitrage with perfect replication. For your convenience, I had put a small program to compute ... More About: Calculator , Visualization , Hole
Who Makes Money in Wall-Street and How
2007-05-22 09:05:00 It is interesting to see the diversity of methods aimed to generate income in the trading scene. Whether it’s mathematical trading or value investing, there are countless methods out there. This post aims to review some of the most common methods used in each area, and it’s most well known earners. Mathematical Trading What is it: After ... More About: Money , Wall Street , Street , Wall
Getting Paid to Blog?
2007-05-22 08:37:00 For bloggers out there, you know how hard it is to write free quality content. It can get tough sometimes to have the motivation for it. That is why I have signed up with PayPerPost. It is a company that offers you a market place of advertisers and publishers. The idea is to create ... More About: Blog , Paid , Topic
How Much Can You Stand To Lose On a Given Day? Part II
2007-05-21 08:48:00 In part I, I wrote about the concept of VaR, Which is a tool to give us some metrics about our portfolio. This part will cover some (basic) calculations and instructions on how to compute the VaR. I’ll be adding also an excel file for your convenience, so feel free to go to the bottom ... More About: Finance , Part , Stand
How Much Can You Stand To Lose On a Given Day? Part I
2007-05-19 08:40:00 Do you know how risky your portfolio is? How do you define the riskiness of your portfolio anyway? If you are managing your own portfolio of securities, it is always a good idea to have “worst case” scenarios. If I told you, that your portfolio could lose 40% of its value tomorrow, would you still ... More About: Trading , Part , Stand
How Much Can You Stand To Lose On a Given Day? Part I
2007-05-19 00:00:00 Do you know how risky your portfolio is? How do you define the riskiness of your portfolio anyway? If you are managing your own portfolio of securities, it is always a good idea to have “worst case” scenarios. If I told you, that your portfolio could lose 40% of its value tomorrow, would you still ... More About: Part , Given , Give , Much , Stand
MathWorks World Tour Comes To Israel
2007-05-16 18:48:00 Today I spent all day at the Hilton Hotel for the Mathworks World Tour . For those who do not know, MathWorks is the company that develops MATLAB. If you haven’t heard about MATLAB, here is a quote from their webpage MATLAB and companion toolboxes provide engineers, scientists, mathematicians, and educators with an environment for technical ... More About: Israel , Topic , Isra
MathWorks World Tour Comes To Israel
2007-05-16 00:00:00 Today I spent all day at the Hilton Hotel for the Mathworks World Tour . For those who do not know, MathWorks is the company that develops MATLAB. If you haven’t heard about MATLAB, here is a quote from their webpage MATLAB and companion toolboxes provide engineers, scientists, mathematicians, and educators with an environment for technical ... More About: Israel , Come , Isra
Why It is a Good Idea to Ignore The Financial Media
2007-05-06 00:00:00 If I’d open the news or read a newspaper before I go about my investing, I’d probably either turn down the idea all together or start a massive short selling. With the recent rally of the Israeli Stock Market, I have yet to find one positive newspaper piece besides the usual negative tone towards ... More About: Media , Financial , Idea , Good , Finan
Why It is a Good Idea to Ignore The Financial Media
2007-05-04 19:51:00 If I’d open the news or read a newspaper before I go about my investing, I’d probably either turn down the idea all together or start a massive short selling. With the recent rally of the Israeli Stock Market, I have yet to find one positive newspaper piece besides the usual negative tone towards ... More About: Media , Finance , Financial , Idea , Good
Apologies For My Recent Inactivity
2007-05-03 00:00:00 Hello to my readers. Sadly, I could not update my blog because I had to fix up some problems I had with my computer. Tomorrow I’ll begin writing some new posts so please stay tuned! Have a great day, The Israeli Speculator. More About: Recent , Logies , Polo , Logi
Do Fund Managers Beat The Market?
2007-05-01 00:00:00 Seeking alpha Back in 1969, Jensen has studied the performance of 115 funds for 10 years. He calculated the difference between the return of the funds minus the expected return of the fund, according to the CAPM model. Jensen has computed what is known as the alpha of the funds: From that research, this “alpha” has been ... More About: Market , Fund , Mana , Beat , Mark
How To Compare The Performance of Funds - Part II
2007-04-24 00:00:00 In the last post, I wrote about the different methods in comparing performance of funds. I have assumed the investor is indifferent to risk. The only question the investor had asked himself was “Who will give me the best expected returns?” What if the investor asks “Who will give me the best expected return for ... More About: Performance , Compare , Part , Fund , Form
How To Compare The Performance Of Funds - Part I
2007-04-21 00:00:00 In this post, I’ll try to explain the different methods to assess the performance of fund managers. How do you choose a fund? If you, the investor, is risk indifferent, you would probably choose the fund that has the biggest return expectancy. How do you calculate the expected return? Let’s assume you are to choose between ... More About: Performance , Compare , Part , Fund , Form
Efficient Market Hypothesis Continued - Semi Strong Efficiency
2007-04-21 00:00:00 This is a continuation of the posts about the Efficient Mark et hypothesis. In the last post about the EMH, I talked about what is known as Weak Form Efficiency . The next category is known as the semi-strong efficiency. The semi strong efficiency basically assumes that the prices reflect all public information. Here are a ... More About: Semi , Tron
Black and Scholes - The Greeks Part III
2007-04-21 00:00:00 In this post I’ll discuss what is known as the theta. Another expression for the theta is time-decay. The effect of the theta on both put options and call options is the same. As each day passes, the option is worth less and less. This should be intuitively clear. As an option gets closer to ... More About: Greeks , Black , Scholes , Part , Hole
Black and Scholes - The Greeks Part II
2007-04-21 00:00:00 This is the continuation of the series about what is known as the “greeks”. In this post, I’ll talk about the Gamma of an option. Read about the delta here .For those who are wondering where all of this is leading if at all, I’m planning later on writing more methods rarely discussed, but those ... More About: Greeks , Black , Scholes , Part , Hole
The Box Technique - Part II
More articles from this author:2007-04-21 00:00:00 This is part II of the last post on reducing risks with synthetic options. In the last topic we talked about the the box technique. As we have said earlier, with the box technique, we don’t buy anymore the stock, just a combination of options on different strike prices. Let’s consider again the following portfolio long ... More About: Technique , Part , Ique , Nique 1, 2, 3, 4 |
 |
|
 |
