FEATURED RESEARCH
Times of Stress Create Opportunities
Hedge and profit from uncertainty.
Swimming With Whales
Whales can make a splash at unexpected times
If It’s a Bull Market, What’s to Worry About?
We care about Skew
Don’t Mess with El Paso
The electricity grid can teach us something about investing
Social Order
Turbulent times enacted on our society is just another chapter
The Edge In Discipline and Time
The Lake Hill ethos
What Are We Rooting For?
Having an edge doesn't guarantee profits. You must be disciplined and patient.
Where do we go from here
Similar to the photosynthesis process, investors could benefit from mitigating the effects of rainy days.
The Law of Large Numbers
The core of what we do at Lake Hill
Day Traders and the Stock Market
Market despair and euphoria makes the case for option strategies
Bank Runs in the Time of COVID
Similar to the Fed, investors have access to an expanding set of tools
The Crisis Playbook
Have a plan and execute
Wimbledon Aced It
Strategy, Discipline, and Persistence pays off
Are You Ready for the Next Downturn
The current market environment may be giving you false comfort
Searching for True Diversification
Is there a direct way to hedge the downside without giving up too much of the upside?
RESEARCH
Investing In A Roulette Wheel
A simplistic analogy to help explain risk management and capturing an edge in investingREAD MORE >>
Hedging Left-tail Risk With Right-tail Options
Find the portfolio protection you need without bleeding to death along the wayREAD MORE >>
What Is The Edge And Why Should It Work?
Looking at the difference between implied and realized volatilityREAD MORE >>
Importance Of Properly Sizing Investments
Make portfolio allocation decisions based on both expected and unexpected outcomesREAD MORE >>
Calibrating Expectations Using Sharpe
Define your risk tolerance and manage your expectations accordinglyREAD MORE >>
The Popularity And Pitfalls Of Weekly Options
Beware the risk of ruin from systematically selling options with negative edgeREAD MORE >>
Shock Scenarios And Understanding The Process
The importance of combining "What if?" analysis with "What then?" processesREAD MORE >>
Analyses Versus Biases In Bonds And Options
Behavioral biases and preconceived notions can lead to suboptimal decisionsREAD MORE >>
How Long Does One Have To Wait For An Option To Pay Off?
A look at the roulette wheel to understand timing, capital management & the importance of disciplineREAD MORE >>
Insurance Companies Are Liquidity Providers
Striking similarities and subtle differences between insurance and optionsREAD MORE >>
Innovations In Risk Transfer Over The Past 4000 Years
The history of options: Straight outta MesopotamiaREAD MORE >>
Tail-Risk Hedging By Systematically Buying Puts
A simplistic approach that provides false comfortREAD MORE >>
Cargo Cult Trading And Option Overlay Performance
Observing that something seems to work can blind you to how badly it can failREAD MORE >>
RESEARCH ARCHIVE
PRESS
EQDerivatives Global EQD 2022
Joe Elmlinger, Head of Client Solutions, spoke on a panel at the EQDerivatives 2022 conference highlighting the opportunities and risks in the current market environment.
READ MORE >>
Volatility Investors Talk Liquidity, Trading Conditions in 2019 - Cboe
Zem Sternberg speaks at CBOE
READ MORE >>
The Popularity and Potential Pitfalls of Weekly Options
Global Capital featured our letter in a recent publication that was distributed to attendees of the CBOE Risk Management Conference.
READ MORE >>
Calmest Markets in 12 Years as Fed Boosts Confidence: Options
Implied volatility across 29 asset classes has reached a 12-year low. What does it mean for markets in the face of shifting tides at the Fed?
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Traders Magazine: Seeking Alpha
"New York hedge fund creates value trading index options."
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Absolute Return: Investable indices are distorting commodities and futures
"The pricing of commodity and futures markets is no longer in keeping with historical patterns.Volatility futures and commodity futures have similar themes."
READ MORE >>
Derivatives Week: Learning Curves
"Investor are always on the hunt for convex payoffs, wanting optionality for little or no cost. How much should investors pay for positive convexity and how much should they receive for negative convexity."
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Watching the Tail (Risk) Wag
"A simple way to investigate the tail is to take the 115 or so years of US stock market data and build a histogram of 3-month returns rolling daily in 10-year windows. This video will show you this analysis in action."
READ MORE >>