Alternative Links: Remembering Long Term Capital Management

Amid an improbable level of calm in markets, it’s worth remembering what Victor Haghani, a partner at Long-Term Capital Management, said in early 1999 about the fund’s implosion, especially given that quiet markets are compelling trading strategies that capitalize on low levels of volatility.

Low Volatility and the Risks of Crowded Trades – (Bloomberg)


Can you trade the fear gauge that everyone quotes? If you answered yes, study the VIX and come back next year. If you know the fear gauge is a tracking index, onward to the next level. How are VIX options priced? If you answered VIX futures, you know more about the VIX than most. Still, if you cannot see the VIX futures curve in your head, burning $100 bills is probably more profitable than trading them.

Most VIX Analysis Is Outright Nonsense – (Barrons)


CTAs enjoyed record monthly inflows of $7.1bn in March, according to latest data from eVestment.

Managed Futures strategies See Record Inflows in March — (CTA Intelligence)


In this post, let’s run various scenarios to see how us momentum investors would fare in each of them.

Scenarios for Momentum Investing – (Sharpe Returns)


The world’s largest grain traders are struggling to boost profits from record-breaking harvests, rattling investors who see more big crops ahead.

Grain Traders Have a Problem: Too Much Grain – (Wall Street Journal)


They’re collectively referred to as the “Greeks.” It all goes back to risk.  The Greeks are measures of the different option dimensions, or sensitivities, to price, time, and volatility. They’re commonly referred to across the internet when talking options trading – but that talk is typically focused on stock options.

The Dummies Guide to Options Greek – (RCM’s Attain Alternatives Blog)

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