Browsing All Posts published on »January, 2011«

Covered Call: Apple, after opening gap down

January 18, 2011 by


Working through a covered call example I document a covered call trade I’d make (in real time).  It requires $34K, and that would be too much of my portfolio to risk at once.  But it illustrates a great opportunity.

Pairs Trade: Apple and PSQ

January 17, 2011 by


AAPL Will Drop on Tuesday I was saddened to learn that Steve Jobs is taking another medical leave. However, this provides an investing opportunity — in particular a pairs trade.  I’ll enter this trade on Tuesday January 18th, and you can follow the progress right here!

Tech Brief: RAID for Number Crunchers

January 16, 2011 by


Disk access is a big bottleneck for the kinds of number crunching we do at Lucena Research. And in order to optimize our hardware setup I’ve been spending a lot of time researching RAID.  Here’s what you need to know. (see a more recent post about RAID with performance results for Ubuntu Linux).

Warren Buffet and the “Fundamental Law”

January 15, 2011 by


Diversification “Wide diversification is only required when investors do not understand what they are doing.”  — Warren Buffet Bufffet’s quote seems to contradict quantitative investment approaches: Quant funds often diversify across hundreds or thousands of positions.  Do quant funds know what they are doing?