Blog Posts

The Jade Lizard is a mildly bullish options strategy that involves the following: Buying a Call (typically ITM or around ATM) Selling a Call (ITM) Selling a Put (OTM) The resulting payoff diagram is as follows:     (This example involves a current price of $100 for the underlying, buying a 95 call, selling a […]

Taxes are an important part of the conversation for risk asset markets, as they impact their valuations. They influence capital flows between countries, as lower forward returns in one country via tax changes impacts investment decisions. It’s an important consideration today, as countries and local governments face large revenue shortfalls. Policymakers will be forced to […]

‘FREE COMMISSION’ the banner declares in big letters across the homepage. ‘OUR BIGGEST SIGN UP BONUS EVER’ another reads. Brokers definitely know how to grab our attention. But, are these deals as good as they seem? Should we be delving a little deeper? The answer is undoubtedly, yes. When it comes to trading brokers, generally, you […]

Below is a list of stocks that pay monthly dividends (i.e., monthly dividend stocks). A lot of these are real estate investment trusts (REITs) and many are business development companies (BDCs). Excluded from the list are oil and gas royalty trusts because of their higher risk. Some O&G royalty trusts may pay a monthly dividend, […]

The Russia-Ukraine conflict got people talking about reserve currencies. Specifically, what is the impact of war on reserve currencies? The US (which has large reserve status through the USD) and developed Europe (which has reserve status through the EUR and, to a lesser extent, the GBP) imposed sanctions on Russia to punish its economy and […]

There’s a lot of confusion regarding quantitative easing, also known as QE, and the impact on bond yields (longer-term interest rates). Quantitative easing is the secondary form of monetary policy after interest rate-driven policy. Once interest rate policy has been exhausted – when short-term interest rates are at about zero – then the focus shifts […]

This article was published on March 18, 2022 Certain individuals holding certain types of assets in certain currencies face the biggest risk of wealth destruction today. Markets provide the biggest opportunities – and the biggest risks – when there are unsustainable flows in liquidity in places where the prices discount earnings or economic scenarios that […]

Monte Carlo simulation is common when doing financial forecasts in order to determine how profitable the return on a certain asset of a given period of time might be. Monte Carlo simulation also allows us to take the sample size that was generated and calculate a couple of useful things. For one, we can ascertain […]

In this article, we’re going to look at a way to price American call options using another package in R, known as “AmericanCallOpt.” (American options are differentiated from European options in that with the former you can exercise before expiry. With the latter, there is no early-exercise option.) With this package, we can do the […]

Even some of the most basic questions about the markets are important as it pertains to understanding them, to get to kinow the mechanics involved in buying and selling stocks. When you fund a brokerage account and execute a trade, you tie up a certain amount of your money as collateral. As such, where does […]