Posts in Trading

Are Contracts Rigged?

In the latest stock market dust-up a lot of people lost a lot of money on the CBOE $VIX and the $XIV. Howard Lindzon wrote about his $XIV experience here.  The $XIV was an ETF created by Credit Suisse. It …

Stock Market Then and Now

No doubt you saw the volatility in the stock market last week. I was reading the editorial in the WSJ on The Bernanke Correction and started thinking about it. My accounts didn’t come through unscathed.  A hedge fund I am …

The Darker The Market The More It Needs Sunlight

There are a lot of nooks and crannies in capital markets.  Exchanges only trade the big ones.  I think it’s important to note that matching trades is super simple.  You can go out and buy a crude automated trading system …

Trade From Twitter

Kind of a cool idea that TD Ameritrade rolled out today. You will be able to initiate trades from Twitter.  Hey, maybe soon you will be able to do it with Alexa and Snapchat. TD already has that sort of …

The Hard Thing About Small Funds

One of the most difficult things about being in a small fund is how much capital to allocate to an investment.  Many funds put the exact same amount in each deal.  That doesn’t seem right to me because the valuations …

There Is One Bear Market

With the continuous record highs being set in the stock market and crypto market people might wonder where to find a bear.  Tim Knight at Slope of Hope might be the last bear left on the planet.  The rest have …

Things That Make You Go Hmmmmm

Kodak. Kodakoin. Utilizing blockchain technology, the KODAKOne platform will create an encrypted, digital ledger of rights ownership for photographers to register both new and archive work that they can then license within the platform. With KODAKCoin, participating photographers are invited to take …

The New Trump Tax Law And REITs

The new tax law goes into effect on January 1. People have a lot of questions. In Illinois, there are lines out the door at tax assessors offices to prepay property taxes. Personally, I was glad to see this subsidy …

Regulating Bitcoin

Bitcoin and the crytocurrency world need some regulation. I am all for taking risk and prefer the Wild West to Cuba, but when you are at extremes it’s not good for anyone. Having the Wild West will lead to anarchy. …

The Foibles of Tax Bills

As the details of the tax overhaul come dribbling out, I noticed one yesterday that seemed odd.  There is a backdoor capital gains tax hike in the bill.  Predictably, there was some outrage since there seems to be something to …

The Free Market In Bitcoin

Free markets are a rarity today.  I mean truly free markets.  The stock and commodity markets are about as close as you get.  If you haven’t read Professor John Cochrane’s blog post about The Hard Road to Free Markets you …

Bitcoin Futures Are Coming. Are You Ready?

There are three ways to trade futures coming on Bitcoin.  The most under-reported one is Ledger X.  It’s not a true future, but a swap.  Technically they call it a SEF, or a “swap execution facility”.  Most of the time, …

Can You Short Bitcoin?

The exchange part of Bitcoin has always been sort of the wild west to me.  No standardization.  No real regulation.  Most of the big time trading is done bilaterally.  DRW’s Cumberland Mining in Chicago is the center of the universe …

The Woulda Shoulda Coulda Trade

Lately as the value of Bitcoin approaches new heights and the stock market continues to rally I am reading a lot about “if you invested x amount back in xxxx” articles.  This is what we used to call the woulda …

The Bitcoin Debate-Is It Overvalued?

Been watching the bitcoin debate back and forth.  There is a ton of confirmation bias in it.  If you own bitcoin, you think it’s going to the moon.  I have heard bitcoin holders tell me it’s still cheap. If you …

Hey, Want A Job Starting and Growing a Hedge Fund?

Recently, WLV closed on our second deal, CFX.  CFX is a two sided marketplace that trades illiquid assets. If there is anything that me, my partner Kenny and the majority of our LPs know is where to identify a trading …

The Bitcoin Future

Yesterday CME announced they were going to list Bitcoin futures.  I was surprised it took this long.  For entrepreneurs, it shows how slow big corporates move to make decisions.  It also shows that when they decide to move, they create …

Career Risk

My friend Sean penned this piece for Medium.  Definitely click over and read it. If you are interested in becoming a trader, you might want to read it.  Back in 1986, when I decided to quit my job at 3M …