## First Encounter with Leverage

I was never a strong believer of playing around with leverage. Especially platforms that allow you to go on 50x leverage, with some even up to 100x. Leverage is not easy for retail investors to implement into a long-term portfolio. It require risk management and position sizing. These are some...

## Discounted Future Cashflow

Previously, we have discussed the discounting of one future cashflow to its present value. In this blog post, we will be going into: How the discounting of future cashflows of a bond’s coupon determine its price How the change of the bond yield (risk-free rate) affect bond price   Discounting...

## COVID-19 Crash: Tail Hedge and the Convexity within IV

Put options are one of the main tools used in hedging against a black-swan event, a market crash with unpredictable cause and severe impact. The recent COVID-19 market crash where the SPY crashed 33% from 340 to 228 is an example of a black-swan event. Unpredictable with severe impact. Almost...

## Suppression of Volatility and its Hidden Dangers

What do you associate low volatility with? A bull market? A slow and steady upward rally? Optimistic future outlook? Do you associate it with the suppression of volatility? We know that there is a strong inverse relation between equities and volatility, a low volatility would therefore also mean that there...