Blog Posts

A calendar spread is an options trading strategy that involves taking simultaneous long and short positions in options of the same underlying asset but with different expiration dates. The primary goal of a calendar spread is to capitalize on the time decay of options premium, also known as theta decay. A calendar spread can also […]

The concept of leverage involves using borrowed capital for investment and amplifying the potential returns. While leverage can magnify profits, it also magnifies losses. Below we focus on how you can generate leverage in your portfolio, through options, futures, borrowing, shorting, and more.   Key Takeaways – How to Generate Leverage in a Portfolio Leverage […]

When beginning with options trading, it’s important to understand the fundamentals and start with basic strategies that limit risk while providing an opportunity to learn and gain experience.   Key Takeaways – Options Strategies for Beginners Options Strategies for Beginners Buying Calls and Puts Covered Call Protective Put Sell Cash-Secured Put Call and Put Spreads […]

Options trading can be a viable trading strategy for small accounts, but it requires planning and careful risk management. Because small accounts don’t have a lot of wiggle room to trade large premiums or sustain losses, we look at some options strategies for small accounts.   Key Takeaways – Options Strategies for Small Accounts Popular […]

Negative carry is a situation where holding an investment or trade costs you more than the income it generates. This concept is important for investors and traders to understand as it can hugely impact their overall returns and portfolio performance. It’s especially relevant in futures and margin trading, but has various other applications as well. […]

Options strategies for low volatility generally center around two main goals: Options strategies to take advantage of low volatility environments Options strategies to limit portfolio volatility to better balance risk and return, preserve capital, and limit drawdowns and tail risk In low volatility environments, where price movements are expected to be smaller and more predictable, […]

Preparing for a quant finance interview involves tackling a range of questions that test your knowledge in mathematics, finance, and programming, along with your problem-solving skills. Behavioral and situational questions will also be part of the interview. Here are some key areas you should be prepared to address, along with example questions and answers for […]

Gamma scalping is an advanced options trading strategy that capitalizes on the changes in an option’s delta, trying to profit from short-term price movements. In this article we break down the concept.   Key Takeaways – Gamma Scalping Market Neutrality Gamma scalping allows traders to manage risk in volatile markets by adjusting their positions to […]

Academic papers can be a great way to not only learn, but also derive trading ideas. For example, in this article, we’ll consider the following paper and how we can derive insights and trade ideas from what’s written: The Term Structure of Covered Interest Rate Parity Violations   Key Takeaways – How to Turn Academic […]

Market microstructure is a specialized area within finance that explains how assets are exchanged in markets. Market microstructure affects liquidity, transaction costs, and price discovery. It’s applicable to both real and financial assets, but the latter has seen more extensive research due to the readily available transaction data. The primary focus of market microstructure research […]