The hottest Options Substack posts right now

And their main takeaways
Category
Top Finance Topics

Bitcoin ETF Options Could Send Bitcoin Much Higher

The Pomp Letter • 439 implied HN points • 08 Oct 24
🔮 Crypto Bitcoin ETFs Options Investing Volatility
  1. Bitcoin ETF options are expected to attract more investors, which may help stabilize its price and reduce volatility over time.
  2. Unlike traditional assets, Bitcoin tends to become more volatile when its price rises, which encourages more buying during bull markets.
  3. The new ETF options will provide a familiar way for institutional investors to access Bitcoin, potentially leading to a significant increase in prices, similar to past market events like GameStop.

Chapter Bundles of Options

Software Design: Tidy First? • 198 implied HN points • 06 Feb 25
🕹 Technology Software Design Development Engineering Options
  1. Creating options in software development is essential, especially when there's uncertainty. Keeping options open increases the value of the project.
  2. Investing time in software design is important for better cohesion and less coupling. This helps the system work more efficiently together.
  3. The more you avoid tight connections between parts of the software, the more flexibility you will have. This flexibility is crucial for future changes or improvements.

WTF is going on at SuperMicro? (SMCI)

Mule’s Musings • 449 implied HN points • 16 Feb 24
💰 Finance Investing Stocks Market Analysis Options
  1. An ongoing gamma squeeze at SuperMicro has led to a significant buying pressure, possibly due to high volumes of options expiring.
  2. The significant demand for shares due to in-the-money calls can lead to billions of dollars worth of shares needing to be accounted for.
  3. After the gamma squeeze peaks, there may be a period of share buying, but ultimately, there are expectations for SuperMicro's stock to stabilize and return to normal.
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Why Crypto Options Matter Now

DeFi Education • 299 implied HN points • 21 Oct 23
🔮 Crypto Trading Market Trends Options Derivatives Investment
  1. Crypto options markets are growing even when other areas of trading are down. This is important to note because it might indicate future recovery in the industry.
  2. Deribit is the largest exchange for crypto options, and their trading volumes are increasing.
  3. Investors should pay attention to the growth in crypto options, as it may signal potential opportunities in a recovering market.

Beautifully Opinionated

moontower: a stoner dad explains options trading to his kids • 137 implied HN points • 28 Jan 24
💰 Finance Investing Education Career Business Options
  1. Moontower.ai is gearing up for private demos with professionals before opening the beta to the waitlist.
  2. Hosting financial literacy sessions for kids can be engaging and informative, like a 'Kiyosaki without the brainworms' approach.
  3. Exploring the history and challenges of mean-variance analysis provides insights into investment strategies and decision-making processes.

DOPEX: The Decentralized Options Exchange

DeFi Education • 759 implied HN points • 21 Dec 21
🔮 Crypto DeFi Options Exchange Blockchain Investing
  1. Dopex is a decentralized options exchange built on the Arbitrum platform. It allows users to trade options in a more open and flexible way.
  2. On-chain options in DeFi are still in the early stages and not as advanced as other markets, like borrowing or lending.
  3. If you're new to decentralized finance, it might be helpful to learn more about the basics before diving into options trading.

Share Count Confusion: Dilution, Employee Options and Multiple Share Classes!

Musings on Markets • 19 implied HN points • 26 Jul 18
💰 Finance Valuation Equity Options Capital Markets Corporate Governance
  1. Young companies often face expected dilution, which means they will need to issue more shares to raise money. This can affect their value per share, as more shares mean the value is spread thinner.
  2. Stock-based compensation (SBC) can complicate valuations because it adds shares into the mix, affecting overall value. It's important to account for both past options and future grants to get a clear picture of share value.
  3. When companies have different types of shares that carry different voting rights, it can create confusion in valuations. Each share type must be valued separately to accurately determine their worth.

The Election Bull Run From the Perspective of Options Markets

Coin Metrics' State of the Network • 0 implied HN points • 12 Nov 24
🔮 Crypto Bitcoin Options Market Trends Regulation
  1. Bitcoin trading was super active during and after the election, reaching new highs in value.
  2. Options markets showed strong focus on call options, indicating that traders are feeling very positive about Bitcoin's future price.
  3. Implied volatility dropped sharply after the election, suggesting that uncertainty has decreased and traders expect more stability ahead.

New Features: Trading Journal & Bid/Ask Spread

Theory A : Visualize Value Investing • 0 implied HN points • 14 Jan 25
💰 Finance Investing Trading Options Data Analysis
  1. A new trading journal feature helps you see all your open positions in one place. This makes it easier to keep track of different option contracts and their expiration dates.
  2. There's improved bid-ask data with a new system that's more accurate. You can now see where the current price is in relation to your contracts with a color-coded line.
  3. The free access to options data has been extended from 30 days to 180 days. This gives you more time to analyze market trends without needing a paid subscription.

2025 Feature Roundup

Theory A : Visualize Value Investing • 0 implied HN points • 07 Jan 25
💰 Finance Investing Options Market Analysis Value investing Financial tools
  1. Combining options trading with value investing can help you benefit from both short-term gains and long-term growth. This way, you can use different strategies to navigate the market more effectively.
  2. Visualizing options data can give you a clearer understanding of market predictions, rather than just looking at plain numbers. It's easier to see trends and potential price movements when data is represented visually.
  3. When using options, it's important to consider the time frame and your investment thesis. Short-term options may offer high leverage but can also be risky due to sudden price changes.

Buffett and Black-Scholes

Musings on Markets • 0 implied HN points • 01 Mar 11
💰 Finance Investing Options Valuation Models Academics Investing Market Analysis Valuation Risk management Derivatives
  1. Warren Buffett believes the Black-Scholes model gives bad values for long-term options, which is a viewpoint that some disagree with.
  2. Buffett's opinions on option valuation may not consider newer methods that adjust the Black-Scholes model for better accuracy.
  3. You can still be a successful investor without knowing how to value options, as long as you avoid investments that rely heavily on them.