by Erik Kobayashi-Solomon | Dec 12, 2014 | Commentary, Uncategorized
Source: The Framework Investing (2014, McGraw-Hill)In Chapter 7 of The Framework Investing, I write about the overcharging for out-of-the-money (OTM) options that leads to implied volatilities being much higher than…
by Erik Kobayashi-Solomon | Dec 11, 2014 | Commentary, Uncategorized
While the talk over the last few months regarding Apple AAPL has revolved around the iPhone 6 and 6 Plus, it is obvious that the firm’s growth has slowed over…
by Erik Kobayashi-Solomon | Dec 10, 2014 | Commentary, Uncategorized
Source: WikipediaThe inexorable nature of “time decay”–the quality of options that make them naturally lose value over time–is something that anyone who invests using options must understand and deal with.…
by Erik Kobayashi-Solomon | Dec 7, 2014 | Commentary, Uncategorized
Source: Bessemer Venture PartnersOracle’s (ORCL) revenues haven’t exactly been on a tear that last few years. I discuss the three main causes behind the softness in a video posted on…
by Erik Kobayashi-Solomon | Dec 7, 2014 | Commentary, Uncategorized
Asset 1 Volatility = 0.6%Asset 2 Volatility = 350%In modern financial theory, volatility is taken to be equivalent to risk. However, I believe it is more helpful to think of…
by Erik Kobayashi-Solomon | Dec 2, 2014 | Commentary, Uncategorized
Risk / Return for an OTM Protective Put A reader of The Intelligent Option Investor, Mr. Arun Garg, who manages an investment fund and also writes an excellent, thought-provoking blog about…
