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Social and Behavioral Sciences Commons™
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Articles 1 - 4 of 4
Full-Text Articles in Social and Behavioral Sciences
The Misguided Journey To Queflation, Jannie Rossouw, Darrol J. Stanley
The Misguided Journey To Queflation, Jannie Rossouw, Darrol J. Stanley
Graziadio Working Paper Series
No abstract provided.
The Economic Crisis Index Quarterly Newsletter, Darrol J. Stanley, Donald M. Atwater
The Economic Crisis Index Quarterly Newsletter, Darrol J. Stanley, Donald M. Atwater
Graziadio Working Paper Series
This is the first issue of a quarterly newsletter publication that will update the Economic Crisis Index ™. This issue explains in detail the methodology of the Economic Crisis Index (ECI) and its comparison to other similar indices. Future newsletters will center on the ECI number and its implication to the American economy. These newsletters will be posted on the Pepperdine University Digital Commons.
Unmasking The Tipping Point For The Next U.S. Financial Crisis, Darrol J. Stanley, Donald M. Atwater
Unmasking The Tipping Point For The Next U.S. Financial Crisis, Darrol J. Stanley, Donald M. Atwater
Graziadio Working Paper Series
The risks of the next U.S. Financial Crisis are increasing. Many Americans are fearful of the very negative financial impact of the next crisis especially since it could occur so soon after the negative impact of the Covid Pandemic on the economy. Financial safety nets are weak. The scope of the crisis includes decreasing values of assets, a recession caused by government policies, decreases in the value of existing bonds, and significant social stress fueled by political polarization after the 2022 midterm elections. We believe the solution to the fear begins with knowledge and a logical approach to assess key …
Option Strangles: An Analysis Of Selling Equity Insurance, Clemens Kownatzki, Hisam Sabouni
Option Strangles: An Analysis Of Selling Equity Insurance, Clemens Kownatzki, Hisam Sabouni
Graziadio Working Paper Series
Our results suggest, selling SPY strangles are generally profitable across a variety of widths. However, the payoff profile of a short option strangle exposes the contract seller to a potential for unlimited losses. Our evidence on maximum drawdowns indicates that losses on some positions can be the equivalent of the profits gained on approximately forty prior positions. This payoff profile has given rise to the metaphor of selling option contracts as the equivalent of “picking up nickels in front of a steam roller.” The goal of our paper is to analyze the full return characteristics of option strangles and to …