Vectorizing the Qualitative
To model assets properly you need to vectorize the qualitative. Sound weird? It is–but it’s also a lot of fun.
How Leverage Boosts Returns–and Risk
Leverage is best thought of as a kind of non-riskless liquidity that depends on credit availability. Not enough credit, bets are limited; too much credit, bets can quickly turn against one. The solution to this for most retail investors is simply not to invest on...More Options Fun: Finding Price with Spreads
Options are hard? Not really–not when you know how to see them! Some simple rules to make complex options combinations easier can also keep you away from dangerous bets and costly mistakes.
Let’s Talk Options
Call and put options mess up a lot of investors–and it’s usually because they haven’t internalized the logic of stock options. It’s actually not hard!
Defining Sources of Value
If you want to make a lot of money on Wall Street, you have to be good with numbers, right? Wrong. You have to have the skills needed to identify value, but are those math skills? It turns out that the real value in value creation on Wall Street isn’t about complex math but something else entirely.
The Secrets of DPs, LPs, and the Fraud Risks Analysts Must Avoid
One of the riskiest financial scams out there is also a big opportunity for smart analysts who can sniff out lies and misleading information. Here’s how to do it.