Katie Park

Interesting Pic for the Day : Liquidity and market capitalization of stocks across various countries. China , USA, Japan and India leading the liquidity bucket. On the basis of Market capitalization : US is leading followed by China , Japan and India. India has 193 stocks with $5bn of MCAP. The no of 5Bn dollar stocks falls dramatically in the list . India ranks fairly well in both categories, being fourth in terms of market cap and having a significant number of liquid stocks . Over a long period of time this will further improve and makes us one of the most important market for Global Investor for long term investing . Happy Investing !! #Investing #Global #Opportunity

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FREE FX MANUAL FROM LEHMAN. Another chance to get hold of this sort after manual. I was reading it only yesterday and many of the insights you can glean still stand up in today's world. What I also love about are the chapters on Options and Swaps. Then there is of course the gold on Forwards. As a non bank trader I never used FWDS only outright Futures so looking at how to calculate the points was a real eye opener when i started to read it over 10 years ado. If you would like a PDF copy LIKE, comment and sign up to my new FREE insight list: The Adamis Gold. You can get the link in the comments. Share and enjoy the gift. BTW I will be sending out the full PDF copy this Saturday. Along with key interviews with trading legends, deeper insights on USD and RISK and of course key details for our new events we are planning this year.

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What I consider one of the major stock market events and biggest achievements of the year thus far has received only passing notice, if at all, from most news sources. T+1 clearing and settlement began today. The Depository Trust & Clearing Corporation (DTCC) spend years of painstaking preparation for the event. State Street issued a piece on Seizing on the T +1 opportunity. https://lnkd.in/eUBiE8cM Most simply put, funds from stock sales will now be available in the owner's account the very next day rather than needing to wait an extra day. As with most operational details, it's never important until one needs it. I'll end with the conclusions from this to-the-point write-up of T+1 implications: Better operations and provider solutions across this range of processes and business areas can be potentially transformational to organizations that embrace the changes that T+1 requires of them. To realize these efficiencies and benefit from faster, more efficient trading operations, investment managers should: *Analyze metrics (e.g., trade volumes, fail rates, allocation rates and affirmation rates) using the baseline metrics to understand the size/volume of any specific process; *Consider automating manual operations wherever possible, including via available custodian, vendor and/or market infrastructure solutions; *Assess resource needs for modifications to working hours for internal and external stakeholders with primary operations outside of North America; and *Consider relationships with third-party providers within the trading ecosystem and ensure they have the systems and processes that can help to drive these improvements in institutions’ internal operations. ShoutOuts: Deborah Fuhr, CFA fellow; Glenn Francis; Kathy Cuocolo, CPA; Ray Nolting; Joseph F. Keenan, MBA; Cheryl Workman; Robert Tull; James Pacetti; Jamie Farmer; Kaity Au; Jennica Ross; Brian Reilly; Jan van Eck; Chris Hempstead; Reginald M. Browne; Arlene C. Reyes; Paris Smith; Jeff Gitterman; Ryan Cvrkel, CAIA; Bruce Warren-Gunn; Lance McGray Jr.; Mike Akins; Dodd Kittsley; Richard Greene;Dr. Eugene O. Yeboah, Ph.D.;Spencer Wilson; Matthew Bergerman; O'Shaunessy Groome; Tim Lind

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What could you earn with a cutting-edge quant skillset in the US? Explore the average salary and compensation in the US for six quant finance career paths: https://ow.ly/L3vh50U7aUb #CQF #quant #finance #quantfinance #quantitativefinance #career #machinelearning #datascience #riskmanagement #portfoliomanagement #trading #technology #quantstrategies #quantresearch

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Options trading is tough. It requires not only watching the markets but also monitoring the finer details of the Calls and Puts you’re trading. I learned this the hard way! I had time-tested strategies that worked great in equities. Signals to buy, signals to sell.... the works! These strategies generated consistent returns in equities. But when I started applying them to options, the profits just weren’t adding up. Same strategies—way different results. I learnt that options aren’t straightforward. They have peculiar characteristics like implied volatility (IV) and time decay, among others. They depend on many different factors. Simply put, these factors often balloon up the price of an option (call/put) in the short term. If you catch a ballooned-up option on the wrong side, you’re likely not going to see much success. While this is a tough problem to simplify for traders, we’ve got some exciting new tools lined up in June on INDstocks by INDmoney that we hope will help traders bridge this gap!

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Over very long periods stocks follow earnings. Over shorter durations, liquidity and sentiment matter in addition to fundamentals. In fact, the perception of future fundamentals drives sentiment. ** Visit https://intelsense.in for our research services

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The wait for the Federal Reserve's most telegraphed rate cut in recent memory is finally over as the FOMC's red hatted cardinals, the princes and princesses of America's ultimate church of money go into digital purdah for their September conclave. A 25 basis point rate cut is certain but inexplicably there are even odds for a shock and awe 50 basis point rate cut even though I doubt if Pope Jay wants to be dissed as closet Kamala lover (as I am) or panic the market that all is not hunky dory with Joe Sixpack. Fed fund futures price an absurd 175 basis points of easing between now and the January FOMC. This is loco and must be faded as the easiest macro trade now flashing Venetian Tiramisu (pick me up). The fallout from the inevitable roll back in easing euphoria will be higher US Treasury bond yields especially since the Lord Voldemort (he who cannot be named), at the Presidential debate was the $2 trillion US budget deficit. Trump's tirade about the Third World/Third Rate emigrants making doggie kebabs and pussycat enchiladas out of all-American MAGA pets was a brilliant smoke screen to camouflage the fact that he and Rasta Didi have any solution for America's fatal descent into fiscal Armageddon as the world faces the mother of all debt/deficit hangovers after the election. So I slash my duration risk, short the TLT and brace for the fireworks while the old Memon dude hums the Salt n Peppa tune - "lets' talk about sheks baby. Let's talk about you and me. Let's talk about all the things that can be. Let's talk about sheks!". I cannot fathom why Mr. Market prices even odds for a 50 basis point rate cut when inflation is sticky and the unemployment rate is 4.2% and even Claudia Sahm whispers nahi-nahi at any mention of the R-word, dutifully chorused by Wall Street's talking heads, nerds, policy pundits and even FOMC cardinals. The R-word is only uttered by party poo pahs in the desert, who really should be burnt at the stake for monetary policy heresy like moi. So tell me that the 13% crash in crude oil, the 60% meltdown in iron ore and the 25% plunge in Dr. Copper did not happen. Tell me that 20% of Florida car owners cannot afford 3rd party insurance. So tell me that BLS magically made 813,000 jobs disappear into thin air and the US economy only created a pathetic 114,000 jobs after the latest revision. Tell me there is no timebomb ticking away in the netherworld of the $1.8 trillion credit card or the $1.6 trillion auto loan market. Tell me that all is milk and honey in the Middle Kingdom and Hong Kong Central does not have a vacancy rate of 17%. Tell me that only conspiracy theorists imagine the R-word and whisper premonitions of asset contagion. Tell me it just snowed in hell while pigs did aerial summersaults. I also fade the 120 bps plunge in the 2-year UST yield as it is too dramatic for the steady-eddy Powell Fed. SPX is a yummy short now. Will the Fed rate cuts avert recession? Dream on!

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Our options pricing model avoids any and all distributional assumptions regarding asset returns commonly required in other methods. Further distinguishing this model is the use of partial moments to isolate upside and downside variance for calls and puts respectively. How accurate is our model? We post our results daily for several securities here: https://lnkd.in/eKM7AGcu See how ovvolabs.com can augment your existing trading toolkit! We have more truly state-of-the-art tools at our disposal than anyone else (save for those using #NNS https://lnkd.in/eUAYqChx) #derivatives #quantitativefinance #portfolioconstruction #OVVOLabs

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The recent step up in the markets implied probability of a 50 basis point cut this week, rather than 25 bps, has made it the most likely outcome in traders’ opinion. It was not a function of new data or a changed view of the Federal Reserve’s risk mitigation mindset. Rather, it’s a reflection of last Friday’s “informed reporting” by the WSJ and FT, together with no apparent pushback by Fed officials after the resulting market moves. And all this ahead of tomorrow’s retail sales numbers. Among the questions I’ve been wondering about and would appreciate your insights:   How does the Fed push back against media reporting during the “quiet period,” and   Will top Fed officials now feel significantly more compelled to opt for a 50 bps cut given it’s the highest probability market outcome? Underlying all this is the deeper issue of the Fed’s current phase of fluid policy guidance, including little clarity on the destination for rates and the journey there. #economy #markets #federalreserve

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G.V. Subrahmanyam, Founder , GVSRwealth: In investing matters , Access to Quality advise is very important for a Retail Investor’s success. Thanks to SEBI for developing a new class of intermediaries in the form of RIA s and RAs who in turn are providing quality advise for aspirational middle class. Smallcase has done a commendable job in coming up with a fascinating tech platform through which millions of investors from across the country are availing services from SEBI registered RAs and RIAs under one roof. Model portfolios / smallcase products ( a basket of stocks and ETFs) are likely to experience exponential growth in meeting the rising demand from retail investors.

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This is a really great paper describing central bank and commercial bank operations outside of the United States. FX intervention has become an area of study for me as I ponder the effects of China and Japan central banks on US markets. https://lnkd.in/gTquMimg

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By looking at an old diagram, I can identify some of the major traditional players in the FX market. The FX market is significantly different from the markets I have previously participated in. this OTC,decentralized trading market offers a lot of room for strategies based on spread and carry trade to thrive.

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MAGIC/USDT: Update on Volatility Contraction Pattern — 20% Move Already! As I mentioned earlier, I’ve been watching MAGIC/USDT closely, as it was forming a Volatility Contraction Pattern (VCP), signaling a potential major breakout. I’m excited to update that the price has already surged by 20% following my prediction! What Happened: The VCP setup played out as expected, with the price narrowing into a tighter range, setting up for a breakout. This breakout has already delivered significant upside. Next Steps: While we’ve seen a strong move so far, it’s important to monitor how the price behaves at key levels going forward. The breakout is still in its early stages, and there could be more upside if the trend continues. However, always be mindful of risk management, especially after a sharp move. If you’ve been following this, congratulations on the gains! Let’s continue to watch MAGIC/USDT closely for any further opportunities or consolidation.

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I’m thrilled to announce the launch of my next Quant Project: Pricing Interest Rate Derivatives (Caps & Floors) using the Vasicek Interest Rate Model. 🎯🎯🎯 In this project, I’ll be walking through the complete process of pricing interest rate derivatives, starting with an in-depth explanation of the Vasicek Interest Rate Model—a widely used model for describing the evolution of interest rates over time.♥️♥️♥️ The first video in this series focuses on the basics of the Vasicek model, including its key assumptions and dynamics, followed by a step-by-step demonstration of how to estimate the model’s parameters using the Maximum Likelihood Estimation (MLE) technique. This is a critical step for accurately calibrating the model to real market data.😄😄😄 Interest rate derivatives, such as caps and floors, play a pivotal role in managing interest rate risk for financial institutions. These instruments help firms hedge against fluctuations in interest rates, making it essential for Quant professionals to grasp their pricing models and methodologies. By understanding the valuation process, we can better interpret and manage these instruments in practice.🎯🎯🎯 Stay tuned for more content, as I continue to break down the complexities of pricing interest rate derivatives, sharing insights and hands-on approaches that are both practical and academically rigorous.🙌🙌🙌 Vasicek Interest Rate Model (Theory) - Part 1 https://lnkd.in/g5eVuyUh #quantitativefinance #Quant #Modeling #Stochastic #Interest #Rate #Modeling

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When your volatility models start lying to you: The hidden stability crisis in Dupire calibration - and how to fix it. 📈 While Dupire's model reshaped derivatives pricing, many quants struggle with its implementation challenges: 🔹Numerical instability in volatile markets 🔹Poor data quality leading to unreliable results 🔹High sensitivity to market noise Here's how we're tackling this at UnRisk: 🔹 Advanced regularization techniques for robust calibration 🔹 Innovative approaches to handle market data noise 🔹 Real-world validation using S&P500 options data 🔹 Stability-focused algorithms for production environments Our recent work brings together both practical implementation insights and theoretical foundations. The result? A more robust approach to Dupire calibration that maintains stability even under challenging market conditions. Check out the full article in the comments! 👇

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