Viewing entries by
Sage Anderson

Diversification: Avoiding Overlapping Bets

Diversification: Avoiding Overlapping Bets

Today’s post highlights the strong positive correlation between the major stock indices and why trading the same strategy in these underlyings can concentrate risk in your portfolio.

Delta: Backtesting its Predictive Value

Delta: Backtesting its Predictive Value

An option’s delta is often used to estimate the likelihood it finishes in-the-money (ITM). Today’s post examines the historical accuracy of that function.

Looking Around the "Trade War" Corner

Looking Around the "Trade War" Corner

Negotiators are working hard to meet a March 2nd deadline for a US-China trade agreement. Will that represent the end of the conflict, or the beginning of a new one?

More Context on Drawdowns

More Context on Drawdowns

When an account suffers a drawdown, what are some tactics we can leverage to mitigate risk?

Exploring Breakeven Points

Exploring Breakeven Points

If you’re looking for additional ways to analyze potential positions, you might consider a breakeven analysis.

Earnings, Binary Events, and the Trade War

Earnings, Binary Events, and the Trade War

A potential trade war announcement during the 1st quarter of 2019 could mean earnings trades may be exposed to not only one “binary event,” but two (or more).

2018 Rewind & 2019 Forecasts

2018 Rewind & 2019 Forecasts

Looking for more insights on the 2018 trading year, as well as a sneak peek into 2019? If so, today’s post is for you!

Recognizing and Managing Tail Risk

Recognizing and Managing Tail Risk

The Santa Claus rally never materialized in 2018. Today’s post highlights tactics traders can consider when the probability of tail risk is heightened.