Trading Process
Posts about decision frameworks, mindset, education, and what makes a good trader vs a good trade.
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The best portfolio construction idea I ever borrowed
The best idea I ever borrowed on portfolio construction: you don't have to choose between being fully invested and being protected.
How I teach options
Quick note on how I teach options.
Google is the tell for the rest of Mag7
The semis just handed us a warning about tech earnings. Google is the next name to watch to see if it confirms.
The vol supply that never went away
A story from my market-making days that shapes how I still read index vol today.
Why Friday-Monday calendars are a trap
Something I've stopped doing recently: Friday-Monday calendar spreads.
AAPL is at the highs but the surface says capped
AAPL is a clean example of a stock that looks strong on the chart but is quietly capped underneath.
Your total Vega number is probably lying to you
If you run a multi-expiry options book and you're looking at one total Vega number, that number is probably lying to you.
Trading options for a living looks different from what people picture
My actual day is much closer to a series of check-ins spaced an hour or two apart.
Alpha book up 5.22% on a strong theta week
Weekly update on the Alpha Gen book. Strong week. Alpha Gen up 5.22%, driven almost entirely by the Theta sleeve.
Why I'm playing NVDA back up here
NVDA has sold off hard. The thing I keep looking at is how calm the options market is staying about it.
The cheap asymmetric vol is sitting in bonds
VIX is back around 20. That's where the crowd is putting its vol bets.
Alpha book up 3.71%: Delta did the work
Decent week. Alpha Gen book up 3.71%, almost all of it from the Delta sleeve. Long-only also recovered nicely.
The 1-2 week window in VIX worth knowing about
There's a clock in the VIX cycle worth knowing about.
70x on a 3-month option I didn't buy
The semis ETF rallied about 80% off the lows over a few months. Most people remember that move.
The hedging trap that catches you in month four
Hedging a long-only book sounds simple until you've been doing it for three months and the market has only gone up.
A diagnostic for spotting bad IV on your platform
A quick diagnostic anyone can run on an options chain to spot when the model is lying to you.
The mindset shift that makes options click
A mindset shift that changes how you think about trading options.
The VIX regime framework
After two and a half decades trading these markets, my core conclusion on volatility is simple. You have to treat it as a series of regimes, not absolute levels.
Stop cheering for your hedges to work
Your hedge has one job. Take enough sting off the move that you don't capitulate on the core position.
My portfolio: another week where the process paid
Good week in the book. Alpha Generation up around 6% on the week. Long-only made back close to 3% on a broad recovery. YTD now sitting at +6.4% including hedges.