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Hedging XIV - Research and Strategy | Part 1

XIV pushed to another all-time high this afternoon, closing for the fourth day in a row over $100. The "Fear Index"-short ETF continues to soar, returning 105% this year, 163% in the past 12 months, and 545% since starting its latest bullish trend in February 2016. These staggering returns have piqued the interest of many, myself included, and have prompted criticism from more. I want to take a deep dive into what makes XIV tick, hypothesize future price movement, and explore how to best hedge against its radical dips. Some things to consider before starting this series: Along with the written articles, I am also publishing supplementary IPython Notebooks containing my research, calculations, and other miscellaneous code for anyone interested. As I am pulling all of my pricing information from the Quantopian research platform, a large portion of the notebook will only run on the Quantopian website. Please don't hesitate to reach out to me for help if you're having...
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Cryptocurrency Capital Markets: Initial Coin Offerings

If you are interested in learning more about the applications of blockchain technology and cryptocurrencies within capital markets, you have come to the right place. These “capital markets” are not your traditional space for raising equity and debt – rather, they are places for companies to rapidly gain capital via cryptocurrency exchange. This article will delve into: How cryptocurrencies form a crowdfunding-like space for incredibly efficient access to capital What constitutes an Initial Coin Offering (ICO) Monetary policy per different currencies, and the effects of supply and demand on future value ECM. DCM. CCM? Traditional Equity and Debt Capital Markets are markets that exist between clients and financial institutions to meet the funding  needs of those clients. This brief, one-sentence summary is the essence of investment banking – raising capital for those who need it. With that said, I would recommend taking some time to familiarize yourself with the spac...

Blockchain Technology & Healthcare IT

Source: IBM Blockchain technology is often solely associated with cryptocurrencies. So far, the Null.Beta Blog has informed you on the ins and outs of cryptocurrencies and their properties. While cryptocurrencies are fascinating, the technology behind them is more manifold and valuable in application. But first, we must define the technology behind the current wave of decentralization. As described by Jeremy Liu in his article A Human Readable Guide to Bitcoin and Blockchain Technology , cryptocurrencies are built on their respective distributed ledgers “Blockchain”. To understand the importance in the difference between data structures, let’s take a step back and discuss; two different types of databases; centralized and distributed. Have you ever transferred money through your bank? Or maybe you ordered an item through Amazon? In that case you have utilized a centralized database. Centralized databases are created, owned, and managed by a designated entity. We encounter c...

Bitcoin’s Scalability Issue and How It Relates To Bitcoin Cash

On August 1st, 2017, a new digital currency called Bitcoin Cash was created. Unlike some other digital currencies that started from the ground up, Bitcoin Cash was created by splitting off, otherwise known as forking, the Bitcoin blockchain. In this post, I will be tackling various topics including Bitcoin’s scalability issue, what a blockchain "fork" is, and what led to Bitcoin Cash being created. Although the intended audience for this post is anybody and everybody who has an interest in digital currencies, if you are not already familiar with blockchain technology, please read this post first and then rejoin us! Now, let’s get this show on the road! Bitcoin’s Scalability Issue Image Source For most bitcoin owners and supporters, the end goal is global domination… I mean… adoption. Generally speaking, a currency’s value increases as the number of people who accept it as a form of payment increases. Bitcoin is no different. However, Bitcoin is different in th...