Archive | Hedge Funds

Shouldn’t Taleb and Kahneman Disagree? – UPDATED

Wednesday, March 18, 2009


On January 27, 2009, Nassim Taleb and Daniel Kahneman shared a stage for an hour or so.  We finally got around to watching the video, which is embedded below. It is a bit surprising to learn that...

Reversal Signals, VIX and Otherwise

Wednesday, January 16, 2008

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So the Striking Price Daily picked up on the sluggish VIX yesterday. They’re several days late to the party, as all the key options bloggers have been talking about this for awhile, but then what can you expect from a traditional media outlet? Anyway, they get the basic story right, but what’s with Pete Najarian stating the obvious? “I’d like to see a three on the front number of the VIX to signify that panic has set in,” says…

What Will Happen in 2008

Sunday, January 6, 2008


Yes, it’s time for our list of predictions for 2008. Economy. GDP growth in the United States will slow to 1.5%, prompting an annoying number of articles on the decline of the US and lots of analogies to the Roman Empire. The Fed will bring discount rates all the way down to a futile 4.25%, in an attempt to put out an economic grease fire with a fiscal bottle of Evian. Which, as everyone knows, spells “naive” backwards. Oil will…

Top Options Products

Thursday, January 3, 2008


This list from Henry Schwartz at Trade Alert lists the volume numbers for the top options and top options exchanges for 2007. A few notable items: 8 of the 17 listed are index products, counting VIX and XLF DIA comes in last on the list AAPL is the top single company options listing, at #5 Around 23 million VIX contracts traded last year (the #11 spot). That’s a lot. Think about this: the theory is that a huge…

Getting Worse Before It Gets Better

Tuesday, November 6, 2007


Boring rally this morning, and we’re not buying it (either literally or figuratively). Dow now hovering around 30, not a bad time to grab some negative deltas if you need them, and if you’re into that sort of thing. Also, here’s some good reading from Nouriel Roubini: The bloodbath in credit and financial markets will continue and sharply worsen. The gist is that the major financial institutions are valuing large portions of their assets by the relatively voodoo-tastic mark-to-model…

New Age Finance

Wednesday, October 10, 2007

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We write about individual trades and strategies so often it’s easy to sometimes lose sight of the big picture. But macroscopic issues affect us just as much as anybody else, which is why you should read this article from Financial Armageddon, complete with Lou Reed quote. If you think any of this country’s major financial institutions are much more than modern equivalents of priests, wizards, and two-bit hustlers, you probably just haven’t read enough. Level 3 assets, to extend…

Who Hedge Funds Really Work For

Sunday, September 2, 2007


Nice little story in the Times this morning about [tag]hedge funds[/tag] and the people they’ve hurt. As everybody should know by now, you’re really no better off, on average, in a hedge fund than in any other investment vehicle. In this article, we get the story of one man who lost his 250k investment in the [tag]Bear Stearns[/tag] blowup. The most striking thing about the behavior of hedge funds over the past few months is that they’ve made…

Where to put your money?

Friday, August 31, 2007


Another reason not to be jealous of your friends and neighbors who’ve been suckered into hedge funds: [Via Abnormal Returns] [tags]hedge funds, equities, bonds, investing, being a sucker[/tags]


Jared Woodard specializes in trading volatility as an asset class. With over a decade of experience trading options and other volatility products ... Read More


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