Archive for the ‘Wall Street’ Category

The Giffen Good Concept Applied To Investments

The Giffen Good Concept Applied To Investments

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Editor’s Note: A version of this post appeared in the San Antonio Express News “So…Money” column. The only “C” I got in college was in Intermediate Macroeconomics, but I remember one economics term that I really loved — the “Giffen Good.” With ordinary, rational, economic behavior, we expect that when prices go up, people buy [&hellip

Options Part III - Delta Hedging

Options Part III – Delta Hedging

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Please see related posts Options Trading Part I – NFW Edition Options Trading Part II – The Currency of Options Trading   For the next little bit I’ll use a specific made-up example, of a fictional pet insurance company[1] with ticker symbol PAWS.[2] Let’s say PAWS shares trade at $100 per share, and I am [&hellip

Options Trading Part II - The 'Currency' of Options

Options Trading Part II – The ‘Currency’ of Options

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

Please see related introductory Post: Options Trading Part I – NFW Edition How Wall Street thinks about options trading Non-professionals who engage in options typically do not understand the ‘currency’ in which they’re trading. By ‘currency’, I don’t mean option-users remain unaware of their US dollars. I mean that professional options traders use a mathematical valuation [&hellip

Options Trading Part I - NFW Edition

Options Trading Part I – NFW Edition

By The Banker | Blog Posts, How Not To Invest, Investing, Wall Street

This is a highly speculative trade, not an investment, so run away, retail investor! A friend in the finance-writing space sent me a query not long ago about the idea of “selling puts” as an appropriate and lucrative investment activity. Following my swift reply of “NFW[1],” she asked for an explanation. After all, a friend [&hellip

Dan Loeb Comes To A Sleepy Town

Dan Loeb Comes To A Sleepy Town

By The Banker | Blog Posts, Wall Street

Editor’s note: A version of this post appeared in the San Antonio Express-News under my “So…Money” column, “Dan Loeb Is Not ‘San Antonio Nice’.” It’s probably hard for non-San Antonians to understand the importance of this one medium-sized company for the city’s image of itself. Rackspace is the darling of San Antonio’s business community, a [&hellip