Blog Posts

Max pain is a concept in options trading that relates to potential price movements as options approach expiration. It’s rooted in the idea that market makers, or option writers, have an incentive to minimize the payouts to options holders at expiration.  This idea suggests that, in the final hours or days before options expire, the […]

For options traders, Call Walls and Put Walls offer insights into support and resistance points in the market, particularly as option expiration dates approach.  These levels mark large areas of options open interest and can provide clues about potential reversals or continuations in price trends.  This article explains how Call and Put Walls shape daily […]

Financial markets are complex systems that have long fascinated economists, mathematicians, and market participants.  There are many conceptual frameworks and mathematical approaches to understanding financial markets. One of the frameworks for understanding these markets is through the lens of chaos theory, particularly the concept of level 2 chaotic systems.  This approach helps us understand conceptually […]

In the 1970s, structuring portfolios was much simpler, often following a straightforward “60/40” rule – 60% equities and 40% bonds. Most US investors stuck to domestic stocks and bonds, trusting that this approach provided sufficient diversification. The idea was that equities would drive growth in the portfolio, while bonds would offer stability and income. Fast […]

Paul Tudor Jones, the legendary trader and founder of Tudor Investment Corporation, is known for his market acumen and consistent success over decades. He’s most famous for shorting the market just before the crash of October 19, 1987. In college Jones was very into games like backgammon and chess, which involve probabilities (more the former) […]

Louis Moore Bacon is known for his expertise in global macro trading and risk management.  His trading strategies delivered impressive returns with relatively low volatility.  Bacon’s ability to make calculated, bold bets on global markets has set him apart as one of the most successful macro traders in history.    Key Takeaways – Louis Bacon Trading […]

Bruce Kovner is one of the most influential and successful global macro traders in history.  As a co-founder of Caxton Associates, a highly successful hedge fund, his trading strategy blends a deep understanding of macroeconomic factors with technical analysis and strict risk management. Bruce Kovner is among the many successful traders who emerged from the […]

Commodities Corp doesn’t typically come to mind when we think of the most successful hedge funds or trading shops in the world.  In fact, most have never heard of it. While it didn’t rise to the global fame of some firms after its acquisition by Goldman Sachs in 1997, Commodities Corp was a popular training […]

Markets can seem both democratic and undemocratic at the same time.  Anybody can participate, but with the informational, analytical, and technological disparities being what they are, it can be difficult for smaller traders to find an edge. Large institutional investors seem to have every advantage: more capital sophisticated technology, and armies of analysts Despite these […]

Day trading momentum stocks involves taking advantage of rapid price movements within a single trading day.  Momentum is a key variable that many traders want part of their process.  If you look at most price charts, they might look semi-random, but you always notice that they tend to move in trends a lot too. Institutional […]