Ideas are cheap, execution is everything – Part II

Calendar Spreads Calendar spreads, also known as horizontal spreads or time spreads, compose of 2 same class options with the same strike (vertical) but a different expiration cycle (horizontal). Yes, naturally, a diagonal spread means two same class option with both different strikes and different expiration cycles. Herein, we refer them as time spreads. That …

Ideas are cheap, execution is everything – Part I

In one of the episodes of Shark Tank reality TV show, one of the sharks, Chris Sacca,  said "Ideas are cheap, execution is everything". This statement resonates with any person who puts their money at risk and expects a return based on a realistic projection that would allow them to cover their initial cost and …

“Adjustment Disorders” post crisis

Credit Value Adjustment (CVA) is a challenge and itself is a complicated topic to handle. While money managers concern themselves with what moves an instrument value and the cost of financing the position, CVA traders have to care much more, seemingly assuming the dual roles of a middle office responsible for counterparty credit risk "monitoring" …

The ‘Original Sin’ an unavoidable path?

Despite EM and AxJ portfolio managers praising Asia's stronger reserve balance, covered foreign currency exposure, leading growth rates and political stability, there are still some who would panic on the withdrawal of liquidity from the Fed and ECB - the authorities who controls the supply of USD and EUR that are the most internationalised currencies. …

The Art of War: How to beat a strategist in the futures market?

Strategy: core directional choices that best best moves you into your desired future Tactics: specific actions that will best implement your strategies Without a core strategy to anchor all tactics suggestions to see which best FIT (feasible, impactful, timely) the strategy, one could randomly suggest tactics that makes the discussion chaotic. Focus on one strategy …