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
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 Estimate Future Volatility of a Stock Like The Pros
2007-04-21 00:00:00 Here is the method for estimating future volatility of a stock. Remember though that the method is not perfect, but by the law of averages, in the long run, it is a good estimate. The estimation of future volatility is essential for the Black and Scholes model Computing Historical Volatility: Suppose we want to compute the historical ... More About: Future , Stock , Mate , Like
Black and Scholes - The Greeks Part I
2007-04-21 00:00:00 This is a continuation of the Black and Scholes post. After we have computed the fair price with the B&S formula, we can compute more parameters that are related to the formula. Consider the buyer of stocks. What is he worried about? Obviously, a market decline. Anyone who only buys the underlying has one real concern, ... More About: Greeks , Part , Hole
How To Make Money Trading Options With Synthetic Positions - Part I
2007-04-21 00:00:00 Introduction With synthetic positions, we aim to make money not by trying to predict future movements, but by mis priced option prices. What does it mean to have a synthetic position? Consider the following example: A trader who purchases a call that expires in one month with a strike price of 100 and writes a put with ... More About: Money , Make Money , Trading , Options , Part
How To Make Money Trading Options With Synthetic Positions - Part II
2007-04-21 00:00:00 This is the second part of the option trading with synthetic positions. If you haven’t read it, please read it now. In this post, i’ll discuss the common risks in taking such synthetic positions so you would know what to avoid. Consider the following example: A stock trading at 103, a 100 call option with 1 ... More About: Money , Make Money , Trading , Options , Part
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
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
How To Reduce Risks In Synthetic Positions Part I
2007-04-21 00:00:00 In the last posts, I was writing about synthetic positions and how to make profit out of them. We have seen though that they entail risk of interest rates and dividend payouts. How can we eliminate the need to buy (or sell) the stock itself? Consider buying the following portfolio as we have discussed in the ... More About: Risk , Reduce , Part , Redu , Posi
Efficient Market Hypothesis Continued - Semi Strong Efficiency
2007-04-18 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
2007-04-15 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: Greek , Greeks , Black , Scholes , Part
Black and Scholes - The Greeks Part II
2007-04-11 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: Greek , Greeks , Black , Scholes , Part
The Box Technique - Part II
2007-04-10 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: Tech , Technique , Part , Ique , Nique
How To Reduce Risks In Synthetic Positions Part I
More articles from this author:2007-04-09 00:00:00 In the last posts, I was writing about synthetic positions and how to make profit out of them. We have seen though that they entail risk of interest rates and dividend payouts. How can we eliminate the need to buy (or sell) the stock itself? Consider buying the following portfolio as we have discussed in the ... More About: How To , Risk , Reduce , Part , Redu 1, 2, 3, 4 |
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