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

Real Estate and the Efficient Market Hypothesis

Real Estate and the Efficient Market Hypothesis

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

Editor’s Note: A version of this appeared in the San Antonio Express News. Dignowity Hill is a historic neighborhood in San Antonio balanced precariously – for the moment – on the cusp of hipsterism, about to fall into the ‘gentrified’ category. For anyone who has strongly held opinions about gentrification, let me assure you this post has [&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

Currency Exchange Thoughts

Currency Exchange Thoughts

By The Banker | Blog Posts

Editor’s Note: A version of this column appeared in the San Antonio Express-News this morning. When we decided to move to San Antonio five years ago, my only condition to my wife was that we would travel as a family outside of Texas for some time during the worst Summer months. I had already encountered [&hellip