In Part 1, we talked about how to stop paying for insurance. In Part 2, we are going to talk about how to stop paying for stocks. The trouble with buying stocks is that they are capital inefficient. If you want to buy 100 shares of Dell, you have to find roughly $13,500. If you…
The basic premise of owning stocks is that you want them to go up. This is a good premise. It has worked, historically, quite well. But sometimes stocks go down, and this is generally considered “bad.” If you are a rational economic actor, you might look at your portfolio of tech stocks and think, “I…
Section 1: Letter to the Financial Investor The Physicality of the Cloud For decades, the definition of “Real Assets” was immutable: toll roads, pipelines, and power grids. These assets were prized for their monopolistic positioning, high barriers to entry, and inflation-linked cash flows. Today, we argue that a new asset class has not only joined…
Michael Burry is back in the headlines. It looks like he is reloading the “Big Short” cannon—this time aiming at the AI sector. We’re talking about a reported $1.1 billion notional short against NVIDIA and Palantir. (However, there were recent reports stating that Burry has already exited this trade.) His thesis isn’t about the technology failing. It’s…
The bull put spread is a staple income strategy: short a lower-delta put, buy a farther OTM put, collect net credit, profit from time decay and upward drift. Yet this seemingly conservative structure harbors a hidden breakpoint. As the underlying declines, the short put’s delta accelerates non-linearly. When it reaches 0.40 delta, the position’s gamma…
Earnings announcements create the perfect storm for options traders: implied volatility collapses while directional risk explodes. For senior traders managing concentrated positions, this isn’t just about P&L—it’s about survival. The scenario we’ll dissect today represents the #1 cause of unexpected capital calls in professional options portfolios: a low-probability short put that morphs into a high-delta…
The “Wheel” is one of the most popular options strategies for generating income. At its core, it’s a systematic process: you sell cash-secured puts on a stock you’re willing to own. If you get assigned, you then sell covered calls against those shares. But as any Wheel trader knows, the real challenge isn’t the “what.” It’s…
1. Executive Summary Quantum computing has transitioned from pure research into a capital-intensive commercial race, with global investment exceeding 1.25 billion USD in the first quarter of 2025 alone—more than double the prior year—and over 4.4 billion USD deployed across 2024. For public-market investors, the sector presents a portfolio of asymmetric opportunities characterized by extreme…
A deep dive into one of Wall Street’s most reliable long-term indicators—and why its warning signals in 2025 are more complicated than they appear. It’s the question on every investor’s mind as we head into the final months of 2025: After a remarkable run, is the stock market dangerously overvalued? Pick your favorite news headline,…
Financial crises are often spoken of in the past tense, like historical cataclysms or “black swan” events that arrive without warning. But what if they aren’t? What if, instead of random bolts from the blue, they are the predictable final act of a long, slow, and observable process? The economists Hyman Minsky and Charles Kindleberger…