Trader Mike and the Quantum of Solace

"Quantum of Solace" originates from a short story of the same name by Ian Fleming. He used it to refer to a specific emotional concept related to relationships and human interaction but it easily translates into our world of trading. It refers to the minimum amount of understanding required for a trade to survive. Without this "quantum," the trade becomes unsustainable. It reflects the idea that even the smallest unit of understanding or potential profit can maintain a P&L or a market rally, but its absence signals the end. Mike thinks the end is nigh, he knows these markets are the greater fool. His profits confirm - he’s making a bundle - but he’s desperately searching for his tail risk position and the moment to walk away.

He’s been head over heels in the bizarre bazaar of options trading, where opportunities flicker like quantum particles: now you see them, now you don’t. He’s been seeing them alright, and i’m gonna try to chronicle what he’s been up to. This is my summary of our discussions over the last two weeks.