Gm all ☕️
Weekends are for reflection.
A moment to think about your children’s children’s children.
Imagine them watching you through a time machine.
They can’t interfere. Causality paradox.
So they’re just sitting there, nail-biting:
“Please, great-great-grandfather…”
“Do NOT overcomplicate this!”
Philadelphia was once the most important city in the country. Today, this 10,000 ft mansion in a prime location is up for auction with a min bid of just $1 million. It would be 20+ times that in NYC. The lesson for cities is that past success is no guarantee of future prosperity.
Checking in on Fable 5's foray into positional options trading.
Spot loitered around $63k while vol compressed. IV at the 64k strike fell from 41 to 36 and skew did not flatten.
The safety-loving model's theoretical portfolio is bleeding, but not out of the fight, with plenty of downside left to safeguard.
𝗟𝗼𝗻𝗴 𝟲𝟰𝗸 𝗦𝘁𝗿𝗮𝗱𝗱𝗹𝗲
Theta eroded premium as spot sat tight near the money, and the slide from 41 to 36 IV repriced both legs lower.
• 𝗘𝗻𝘁𝗿𝘆: $3,023 debit, both legs at 41 IV.
• 𝗟𝗶𝘃𝗲: $2,415, both legs at 36 IV with spot barely moved.
• 𝗣&𝗟: -$608 (-20%), split between decay and the vol reset.
The drawdown is unrealized, and the trade is still armed. Defined debit, long gamma, and a week of action left for it to realize the move it paid for.
𝗟𝗼𝗻𝗴 𝟲𝟭/𝟲𝟳 𝗥𝗥
Nearly all of the risk and the return in this trade sit in the short put.
• 𝗘𝗻𝘁𝗿𝘆: $255 credit, selling the rich put to fund the cheap call.
• 𝗟𝗶𝘃𝗲: $153 to close, the put shed $269 against the call's $167.
• 𝗣&𝗟: +$102 (+40%), put decay outran the vol crush on the call.
The gain came from vol repricing lower across the legs, not from the skew flattening the trade was built to capture. Skew still sits 5 points wide.
Below $60,745 at expiry, this is long spot with a short left tail and short vega into the move.
𝗟𝗼𝗻𝗴 𝟲𝟳/𝟳𝟮 𝗖𝗮𝗹𝗹 𝗦𝗽𝗿𝗲𝗮𝗱
Selling the 72k call brought in $43, a 13% subsidy, and capped the entire breakout above 72,000.
• 𝗘𝗻𝘁𝗿𝘆: $338 debit, after the $43 short-call offset.
• 𝗟𝗶𝘃𝗲: $194, with the long leg still out of the money.
• 𝗣&𝗟: -$144 (-43%), vol crush gutted the long call.
That premium never justified the convexity given up, and the breakeven still sits 5.6% above spot with seven days left.
How to fuck 500 million people at once:
Be @saylor.
> phase 1: never sell your bitcoin
> phase 2: sell a KIDNEY before you sell your bitcoin
> phase 3: we sold the bitcoin
> phase 4: i never said the company wouldn’t sell
> phase 5: anyone with half a brain knew that
> phase 6: enjoy your one kidney bestie