Add training workflow, datasets, and runbook
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305
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A
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Absolute dollar value of returns,
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172–173
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Accuracy, confidence vs., 119–121
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Acquisitions (see Mergers and
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acquisitions)
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Activist investors, 110
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Against the Gods (Peter Bernstein), 9
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Agents:
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buy-side, 132–136
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defined, 131
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investment strategies of, 137–138
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principals vs., 131–132
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sell-side, 136–137
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AIG, 301n1
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Allocation:
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and leverage in portfolios,
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174–183
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and liquidity risk, 256
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and portfolio management with
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short-call spreads, 228–229
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Alpha, 134
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American-style options, 296n2
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(Chapter 1)
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Analysis paralysis, 120
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Anchoring, 60, 97
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Announcements:
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and creating BSM cones, 156, 157
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market conditions following, 68–69,
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72–73
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tenor and trading in expectation
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of, 192
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AOL, 103
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Apple Computer, 101, 250–251,
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297–298n3
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Arbitrage:
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defined, 288–289
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dividend, 223, 288–293
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Ask price, 147
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Asset allocation, liquidity risk
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and, 256
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Assets:
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defined, 78–79
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fungible, 272–273
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in golden rule of valuation, 77
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hidden, 110, 111
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idiosyncratic, 272
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interchangeable, 272–273
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mispriced, 274–277
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operating, 110
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price vs. value of, 79–80
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underlying, 33–34, 272–273
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Assets under management (AUM), 132
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Assignment:
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with covered calls, 247–248
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defined, 222–223
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Assumptions:
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BSM model, 32–33, 40–47, 78, 150
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dividend yield, 67
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with forward volatility number,
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156–157
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time-to-expiration, 64–67
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volatility, 60–64
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At-the-money (ATM) options:
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BSM cone for, 53
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collars, 259
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covered calls, 242–243, 245, 246
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defined, 13, 16, 17
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long calls, 189
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long diagonals, 235–237
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Index
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