The casualties of the financial crisis aren’t just institutions, homeowners, and the newly unemployed: some ideas have taken a beating as well. John Quiggin (Queensland) collects some of his work on refuted economic doctrines, and they’re really well executed (both the articles and the ideas, if you’ll pardon the pun): #1 The efficient markets hypothesis #2 The case for privatisation #3 The Great Moderation #4 Individual retirement accounts #5 Trickle…
Tuesday, August 12, 2008
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There are plenty of ways to put on option trades that have a neutral outlook: straddles, strangles, condors, etc. Whereas stock and futures traders are limited to whatever price action the market gives you, options let you take a view on implied volatility (vega), the passage of time (theta), and the rate of change of the rate of change of the option per unit move in the underlying (gamma). Okay, that last one isn’t so obvious, but the idea is…
Thursday, February 5, 2009
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