BusinessInvestingEducation

Patrick Boyle

Patrick Boyle is a hedge fund manager, a university professor and a former investment banker.

This channel is all about quantitative finance. By subscribing you will see videos explaining what is happening in markets right now, you will learn about financial derivatives, corporate finance and how traders use quantitative tools like statistics. You will see interviews with some of the most interesting people in the financial industry. In addition, you will see some longer form documentaries on the history of financial markets.

To contact Patrick go to the website http://onfinance.org

DISCLAIMER:
This channel is not affiliated with any financial institution. The videos on this channel are for entertainment purposes only and do not constitute financial advice. Those seeking investment advice should seek out a registered professional. Patrick is not responsible for investment actions taken by viewers and his content should not be used as a basis for investment.

Links:
Amazon Author Page: https://amzn.to/3bTeqed
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Website: https://www.onfinance.org/
Instagram: https://www.instagram.com/patrickeboyle/
BlueSky: https://bsky.app/profile/pboyle.bsky.social

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Saturday · 35 min
The Alarming Rise in Global Debt!
Happy FlexiSpot Brand Day & Memorial Day Sale, up to 65% OFF —on May 26th at 9:00 AM, the first 20 customers to place an order will have a chance to get it 100% free. If you are on a budget, FlexiSpot premium E7 will be a great option. Shop now and if you liked it, leave a note saying “Patrick Boyle” at checkout and use my code ''YTE7P50'' to get EXTRA $50 off on the E7 Plus/E7 Pro/E7L standing desk or "YTE730" to get EXTRA $30 off on the E7 standing desk! FlexiSpot E7Plus standing desk: USA: https://bit.ly/3Fd9lSU CAN: https://bit.ly/44EIpFV Developed economies around the world have been growing their debts over the last twenty-five years. This was less of a problem when interest rates were close to zero but in the era of trade wars, lower credit ratings and higher interest rates, debt is more expensive to issue and service. Bond investors have worried that governments are addicted to debt for quite some time, and recent drama in the Japanese bond market along with the deficit spending of Trump's "one big beautiful bill" lead many to question the ability of governments to cover massive budget deficits. This video looks at the drivers of growing government debt, what the money is spent on, can Elon Musk's DOGE cut spending and analyze the role of the 'bond vigilantes', to understand if huge budget deficits and government borrowing could spiral out of control. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 9 min
What is Futures Margin? - What Is It? How Does It Work?
What is Futures Margin? - What Is It? How Does It Work? These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Margin is a critical concept for those trading futures and derivatives in all asset classes. Futures margin is a good-faith deposit or an amount of capital one needs to post or deposit to control a futures contract. The margin is a down payment on the full contract value of a futures contract. Futures exchanges determine and set futures margin rates. At times, brokerage companies will add an extra premium to the minimum exchange margin rate to lower risk exposure. The margin is set based on the risk of market volatility. When market volatility moves higher in a futures market margin rates rise. When trading stocks, there is a simpler margin arrangement than in the futures market. The equity market allows participants to trade on up to 50% margin. Therefore, one can buy or sell up to $100,000 worth of stock for $50,000. Margin Rate for Future Contracts In the world of futures contracts, the margin rate is much lower. In a typical futures contract, the margin rate varies between 5 and 15% of the total contract value. Initial Futures Margin is the amount of money that is required to open a buy or sell position on a futures contract. Initial margin is original margin, the amount posted when the original trade takes place. Margin Maintenance or Variation Margin Margin Maintenance is the amount of money necessary when a loss on a futures position requires one to allocate more funds to return the margin to the initial or original margin level. Closing or liquidating a position eliminates the margin call requirement. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 8 min
Intrinsic value and Time Value of Financial Options
What is Intrinsic value and Time Value of Financial Options?, In The Money, At The Money, Out Of The Money These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle The price of an option is made up of a combination of intrinsic value and time value. The intrinsic value of an option is the value of exercising the option right now. If the price of the underlying stock is above a call option strike price, the option has a positive monetary value, and is referred to as being in-the-money. If the underlying stock is priced cheaper than the call option's strike price, the call option is referred to as being out-of-the-money. If an option is out-of-the-money at expiration, its holder simply allows the option to expire worthless. This is because a rational investor would choose to buy the underlying stock at market rather than exercise an out-of-the-money call option to buy the same stock at a higher-than-market price. For the same reasons, a put option is in-the-money if it allows the purchase of the underlying at a market price below the strike price of the put option. A put option is out-of-the-money if the underlying's spot price is higher than the strike price. The time value of an option is the premium a rational investor would pay over its current exercise value (intrinsic value), based on the probability it will increase in value before expiry. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 12 min
What Are Financial Derivatives?
What Are Financial Derivatives? A Video Explaining what financial derivatives are, who trades them and why? Follow along using the book https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ In this video we will learn who issues derivatives, are they a zero sum game and what are the various underlyings. We will learn a little bit about futures options swaps, credit derivatives etc. We will learn the difference between hedgers and speculators Follow me on Twitter here: https://twitter.com/PatrickEBoyle Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 22 min
What Are Exotic Options?
In todays video we will learn all about Exotic Options. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What Are Exotic Options? In finance, an exotic option is an option which has features making it more complex than commonly traded vanilla options. Like the more general exotic derivatives they may have several triggers relating to determination of payoff. An exotic option may also include non-standard underlying instrument, developed for a particular client or for a particular market. Exotic options are more complex than options that trade on an exchange, and are generally traded over the counter (OTC). Look-Back Options Look-back options give their owners the right to buy or sell the underlying security at the most attractive price that it actually trades in the cash market over a specified period of time. This time period is typically - but not always - the same time frame as the option's life. Binary Options Binary options (also known as digitals) have a fixed payoff if the option ends up being in the money at expiration, regardless of the extent to which it is in the money. Bermudan Options Bermudan options are a hybrid between American and European options. Unlike American options (which can be exercised at any time during a specified period) and European options (which can be exercised only at maturity), Bermuda options may be exercised prior to maturity, but only on certain dates. Barrier Options Barrier options are options that are either activated or deactivated when the price of the underlying security passes through some predefined value (the barrier). Barrier options have eight different varieties: Up and in call - a call option that's activated if the price of the underlying rises above a certain price level. Up and out call - a call option that's deactivated if the price of the underlying rises above a certain price level. Down and in call - a call option that's activated if the price of the underlying falls below a certain price level. Down and out call - a call option that's deactivated if the price of the underlying falls below a certain price level. Up and in put - a put option that's activated if the price of the underlying rises above a certain price level. Up and out put - a put option that's deactivated if the price of the underlying rises above a certain price level. Down and in put - a put option that's activated if the price of the underlying falls below a certain price level. Down and out put - a put option that's deactivated if the price of the underlying falls below a certain price level. Restrike Options The strike price of these changes if the price of the underlying passes through a barrier price. They're typically written so that the strike price of calls is lowered and the strike price of puts is raised. Asian Options Asian options are very similar to look-backs, with the exception that while look-backs are based on the highest or lowest price over a period of time, Asians are based on an average price. These options can be divided into two categories: Asian strike options and Asian expiration options. Compound Options Compound options provide their owners with the right to buy or sell another option. These options create positions with greater leverage than traditional options. There are four basic types of compound options: Ca-call - the right to buy a call. Pu-call - the right to sell a call. Ca-put - the right to buy a put. Pu-put - the right to sell a put. Perpetual Zero Options As the name implies, perpetual zero options never expire, and they have a strike price equal to zero. The perpetual right to buy an underlying security at a price of zero has the same val Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 8 min
Order Types Used by Traders and Investors
Order Types Used by Traders and Investors - Market Order - Limit Orders - Stop Orders These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle If you are buying or selling financial products, when you use a market order, you are essentially just requesting the transaction to go through at the next available price. Limit orders are another order type but they limit the price at which the stock is bought or sold. You can place a limit order so that it will buy below a set price or sell above a set price. The main downside of a limit order is that the trade may not go through if the price never gets to the limit you have set. You therefore need to keep on top of your limit orders to ensure it does get bought or sold. The stop order orders the purchase or sale of a stock once it’s reached a certain price. Buy stop orders are put above the current market price and a sell stop order below the current price, with the potential benefit of reducing your loss or protecting your profits. You can also use a stop limit order, which releases a limit order once the stop price has been triggered. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 34 min
Are the Rich Really Leaving Britain?
Ad: 🔒Remove your personal information from the web at https://joindeleteme.com/BOYLE and use code BOYLE for 20% off Are Britain’s millionaires really fleeing the country—or is the “exodus” just a statistical mirage? This video digs into the numbers behind the headlines, from the much-quoted Henley & Partners migration report to the real impact of the UK’s non-dom reforms. We’ll look at what’s actually driving high earners to consider leaving, how tax policy shapes behavior, and why trust in government and value for money matter just as much as the top rate. Along the way, we’ll separate myth from reality, compare the UK’s approach to countries like Sweden and Switzerland, and ask what history can teach us about taxing globally mobile wealth. If you want to understand the real story behind the millionaire migration debate—and what it means for Britain’s future—watch now. Further reading: Tax Policy Associates - Why the rich paid less tax in the 1970s – despite 98% tax rates: https://taxpolicy.org.uk/2025/05/08/tax-rich-1970s-loopholes/ Tax Policy Associates - Are Henley & Partners’ millionaire‑migration reports fabricated?: https://taxpolicy.org.uk/2025/07/27/henley-partners-millionaire-migration-report-analysis/ Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 6 min
What is a Forward Contract?
What is a Forward Contract? In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or to sell an asset at a specified future time at a price agreed upon today. The party agreeing to buy the underlying asset in the future assumes a long position, and the party agreeing to sell the asset in the future assumes a short position. The price agreed upon is called the delivery price, which is equal to the forward price at the time the contract is entered into. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 16 min
What are index options? What are currency options?
In todays video we will learn about options on foreign exchange and index options. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle Options on Stock Indices - what are index options? A stock market index is a method of measuring the price movements of a basket of stocks in a market. Many indices are cited by the media and are used as benchmarks to measure the performance of portfolios such as mutual funds. Some are price indices and some are total return indices, meaning that they include reinvested dividends over time. There are a number of different index types. National indices represent the performance of the stock market of a given nation. Sector indices track the performance of specific industry sectors in the market. Ethical indices include only those companies that satisfy certain ecological, religious, or social criteria. Index options exist on broad-based indices like the S&P500 or the Russell 3000. They also exist on more narrowly based indices like mining indices or semiconductor indices. The global market for exchange-traded stock market index options is notionally valued by the Bank for International Settlements at hundreds of billions per year. When OTC options are added to that, you can see that it is a very large market indeed. An index option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell a basket of stocks, such as the S&P500, at a pre-agreed price on a specified date. An index option is similar to other options contracts, the difference being the underlying instruments are indexes. Index options are typically cash settled. Uses of Index Options There are two main reasons that investors will pursue index options. 1. Portfolio insurance: Investors with large stock portfolios may wish to insure their downside risk by buying put options. 2. Speculation: Portfolio managers may wish to use index options to speculate on the direction of the overall market, or on the volatility of the overall market. Foreign Exchange Options - What are currency options? A foreign exchange option is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. European and American options on foreign exchange are actively traded on both exchanges and OTC. Companies frequently use them to hedge foreign exchange risk, and they are commonly used to speculate on the price and volatility of various foreign exchange pairs. The foreign exchange options market is mostly an OTC market. A GBP/USD foreign exchange call option, can also be viewed as being a USD/GBP put option, as they each give the option owner the right but not the obligation to exchange a certain amount of US dollars for British pounds at a pre-agreed exchange rate on a specified date. The Black-Scholes model can be modified to price options on foreign exchange. The modified Black-Scholes model was developed in 1983 by Garman and Kohlhagen and is known as the Garman-Kohlhagen model. It is a modification of the Black-Scholes model which accounts for the different interest rates of each currency. You can think of options on currencies as being an options position with an annual percentage dividend embedded in the form of the foreign currencies’ risk-free rate. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 36 min
The Real Reason You Can't Afford a House
Stop paying for GPT, Claude, and Gemini separately. 🙅‍♂️ Genspark puts them all in one workspace. One subscription. Three killer features: 🔍 Fact Check – 30 rounds of live verification with source proof 📝 AI Meeting Notes – Record on your phone, auto-share professional notes 🎨 AI Designer – Thumbnails, social graphics, anything you need New users get free credits. Paid subscribers get unlimited AI Chat + AI Image for 2026. Try Genspark today 👉https://www.genspark.ai/?utm_source=yt&utm_campaign=PBoyle04 @GensparkProduct #Genspark #ai #WorkWithGenspark A three-bedroom "dunger" in New Zealand with peeling paint and boarded-up windows sold for 1.81 million dollars at the peak of the boom. A few years later, prices had fallen by as much as a third in real terms, recent buyers were trapped in negative equity, and thousands of construction firms had gone under. In this video we look at how a national housing boom turns into a bust, why house prices became so unaffordable in the first place, and what it means for an economy when the family home stops being a place to live and becomes a leveraged investment. Along the way we cover the interest-rate math behind home affordability and why falling mortgage rates inflated prices for forty years, the politics of why governments keep house prices rising, why high housing costs drive young workers to emigrate, and the lessons from past property crashes in Japan, the United States, and Ireland. We also look at Henry George's argument for a land value tax, Edward Leamer's "Housing IS the Business Cycle," and why an efficient property market matters for the whole economy. Whether you're in the US, UK, Canada, Australia, or anywhere else watching house prices climb out of reach, the underlying dynamics are the same. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 14 min
What Is Options Delta? The Options Greeks
These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What is Options Delta? The first Greek we will learn about in this video series is Delta, which measures how much an option's price will change for a 1% change in the price of the underlying security or index. For example, a Delta of 0.40 means that the option's price will theoretically move $0.40 for every $1 move in the price of the underlying stock or index. Call options Have a positive Delta that can range from zero to 1.00. At-the-money options usually have a Delta near .50. The Delta will increase (and approach 1.00) as the option gets deeper in the money. The Delta of in-the-money call options will get closer to 1.00 as expiration approaches. The Delta of out-of-the-money call options will get closer to zero as expiration approaches. Put option Delta Put options have a negative Delta that can range from zero to -1.00. At-the-money options usually have a Delta near -.50. The Delta will decrease (and approach -1.00) as the option gets deeper in the money. The Delta of in-the-money put options will get closer to -1.00 as expiration approaches. The Delta of out-of-the-money put options will get closer to zero as expiration approaches. You also might think of Delta, as the percent chance (or probability) that a given option will expire in the money. For example, a Delta of 0.40 means the option has about a 40% chance of being in the money at expiration. This doesn’t mean your trade will be profitable. That of course, depends on the price at which you bought or sold the option. You also might think of Delta, as the number of shares of the underlying stock, the option behaves like. A Delta of 0.40 also means that given a $1 move in the underlying stock, the option will likely gain or lose about the same amount of money as 40 shares of the stock. Tune in tomorrow for a video on Delta Hedging. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 7 min
What are Currency Swaps?
In todays video we learn about currency swaps. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What are currency swaps? A currency swap is a financial derivatives agreement in which two parties exchange the principal amount of a loan and the interest in one currency for the principal and interest in another currency. At the inception of the swap, the equivalent principal amounts are exchanged at the spot rate. During the length of the swap each party pays the interest on the swapped principal loan amount. At the end of the swap the principal amounts are swapped back at either the prevailing spot rate, or at a pre-agreed rate such as the rate of the original exchange of principals. Using the original rate would remove transaction risk on the swap. Currency swaps are used to obtain foreign currency loans at a better interest rate than a company could obtain by borrowing directly in a foreign market or as a method of hedging transaction risk on foreign currency loans which it has already taken out. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 49 min
We Need To Talk About Leopold
Taking care of your health just got easier, thanks to my sponsor Zocdoc! Start here at: https://zocdoc.com/patrickboyle Last week, 24-year-old Leopold Aschenbrenner — former FTX staffer, ex-OpenAI researcher, and author of the viral 165-page essay "Situational Awareness" — managed to lose roughly two-thirds of his $45 billion hedge fund in a matter of weeks. The margin calls arrived during his wedding weekend. In this video I break down how a trader with no professional experience raised billions from Silicon Valley, why his AI "hedge" wasn't a hedge at all, and how leverage plus a concentrated bet on artificial intelligence stocks turned a great-looking expected return into a catastrophic outcome. Along the way we look at the cultural gap between Silicon Valley and Wall Street, why Ken Griffin's Citadel ended up buying the collapsing portfolio in an overnight fire sale, and the maths of volatility drag — the reason a high expected return can still drag an investor's typical outcome straight into the ground. It's a story about leverage, risk management, expected versus median returns, and what happens when you go "full Kelly." Featuring reporting from the Wall Street Journal, The New York Times, Bloomberg, and the Financial Times, plus Victor Haghani's lessons from The Missing Billionaires. Victor Haghani - The Missing Billionaires book: https://amzn.to/4fQUEEB Elm Wealth Website: https://elmwealth.com/ Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 23 min
What are Real Options? - Real Options Valuation Method For Capital Budgeting Decisions
Real options valuation, also often termed real options analysis, applies option valuation techniques to capital budgeting decisions. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle A real option itself, is the right but not the obligation to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. For example, the opportunity to invest in the expansion of a firm's factory, or alternatively to sell the factory, is a real call or put option, respectively. Real options are generally distinguished from conventional financial options in that they are not typically traded as securities, and do not usually involve decisions on an underlying asset that is traded as a financial security. A further distinction is that option holders here, i.e. management, can directly influence the value of the option's underlying project; whereas this is not a consideration as regards the underlying security of a financial option. Moreover, management cannot measure uncertainty in terms of volatility, and must instead rely on their perceptions of uncertainty. Unlike financial options, management also have to create or discover real options, and such creation and discovery process comprises an entrepreneurial or business task. Real options are most valuable when uncertainty is high; management has significant flexibility to change the course of the project in a favorable direction and is willing to exercise the options. Real options analysis, as a discipline, extends from its application in corporate finance, to decision making under uncertainty in general, adapting the techniques developed for financial options to "real-life" decisions. For example, R&D managers can use Real Options Valuation to help them allocate their R&D budget among diverse projects; a non business example might be the decision to join the work force, or rather, to forgo several years of income to attend graduate school. It, thus, forces decision makers to be explicit about the assumptions underlying their projections, and for this reason ROV is increasingly employed as a tool in business strategy formulation. This extension of real options to real-world projects often requires customized decision support systems, because otherwise the complex compound real options will become too intractable to handle. Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 54 min
Scott Bessent Is at War With Prices — and Prices Are Winning!
Go to http://ground.news/pb for a better way to stay informed. Subscribe for 40% off unlimited access to worldwide coverage through my link. Treasury Secretary Scott Bessent is trying to force down US Treasury yields with surprise bond buybacks — and it isn't working. In this video we break down Bessent's activist debt management strategy, why doubling the Treasury's long-dated buybacks is a bet on falling interest rates funded by short-term bills, and why his old boss Stanley Druckenmiller publicly tore the plan apart in a Wall Street Journal op-ed ("Let the Bond Market Speak"). We look at the collision with new Federal Reserve Chair Kevin Warsh after Jackson Hole, the 50% tariffs on Canada and the Mark Carney feud, "Operation Economic Outcast" and the secondary-sanctions problem with China and Iranian oil, the GENIUS Act and crypto's role in sanctions evasion, and Stephen Miran's case for the defense. The through-line: you can't trade around arithmetic. When a government goes to war with market prices, the bond market has an infinite balance sheet — and prices tend to win. Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 34 min
Panic In the Car Market - Americans Rush to Beat Tariffs!
Go to https://ground.news/pb to get up to 40% off unlimited access to stay fully informed. Subscribe through my link this month for 40% off unlimited access. Americans have ben rushing to change their cars as President Trump’s 25% tariffs on imported cars and car parts remain in effect despite the deferral of other country-based taxes that were announced last week. Analysts are predicting a drop in vehicle sales, higher new and used car prices, and increased industry costs of more than $100 billion dollars. How will you be affected by Trump's new car tariffs? Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 32 min
The Infinite Money Glitch is Broken!
Get an exclusive 15% discount on Saily data plans! Use code BOYLE at checkout. Download Saily app or go to https://saily.com/boyle For years, firms like MicroStrategy turned buying Bitcoin into a corporate cheat code—raising billions, pumping token prices, and fueling meme-driven hype. But the magic loop has snapped. In this video, we break down why the “infinite money glitch” stopped working, how leveraged ETFs magnified losses, and why even Michael Saylor is now hoarding dollars. From gamma trades to meme economics, this is the story of how hype capitalism hit a wall. Zeke Faux on @GoodWorkMB : https://www.youtube.com/watch?v=exoNex2Yn5w Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 45 min
The Book That Wasn’t Supposed to Exist - Epstein's Birthday Book Released!
Go to https://surfshark.com/boyle or use code BOYLE at checkout to get 4 extra months of Surfshark VPN! In 2003, Ghislaine Maxwell compiled a 238-page leather-bound book for Jeffrey Epstein — filled with letters, sketches, poems, and photos from billionaires, politicians, scientists, and celebrities. This book was never meant to be public. But now, thanks to the House Oversight Committee, it’s part of the public record — and it’s worse than anyone expected. We’ll also explore the deeper questions: Where did Epstein’s money come from? Why hasn’t the government followed the money? And what does this say about the two-tiered justice system in America? This scandal isn’t just about Epstein. It’s about the system that made him possible. Link to my original Epstein Video: https://youtu.be/CbJSgan4mfQ Patrick's Books: Statistics For The Trading Floor: https://amzn.to/3eerLA0 Derivatives For The Trading Floor: https://amzn.to/3cjsyPF Corporate Finance: https://amzn.to/3fn3rvC Ways To Support The Channel Patreon: https://www.patreon.com/PatrickBoyleOnFinance Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle Visit our website: https://www.onfinance.org Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social Business Inquiries ➡️ sponsors@onfinance.org Patrick Boyle On Finance Podcast: Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313 Google Podcasts: https://tinyurl.com/62862nve Join this channel to support making this content: https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices
Saturday · 7 min
What are the Option Greeks? | Hedging Options | Risk Managing Options
These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle If you're an options investor, you may have heard about "Greeks" but you may not know exactly what they are or what they can do for you. If so, watch this series of videos where Patrick Boyle explains what these Greek letters mean and how to use them to better understand the price of an option. What can option Greeks do for you? Using the Greeks, an options investor can make more informed decisions about which options to trade, and when to trade them. Consider some of the things Greeks may help you do: Gauge the likelihood that an option you're considering will expire in the money (Delta). Estimate how much the Delta will change when the stock price changes (Gamma). Get a feel for how much value your option might lose each day as it approaches expiration (Theta). Understand how sensitive an option might be to large price swings in the underlying stock (Vega). Simulate the effect of interest rate changes on an option (Rho). What are Greeks anyway? Greeks, including Delta, Gamma, Theta, Vega and Rho, measure the different factors that affect the price of an option contract. They are calculated using a theoretical options pricing model (see How much is an option worth?). Since there are a variety of market factors that can affect the price of an option in some way, assuming all other factors remain unchanged, we can use these pricing models to calculate the Greeks and determine the impact of each factor when its value changes. For example, if we know that an option typically moves less than the underlying stock, we can use Delta to determine how much it is expected to move when the stock moves $1. If we know that an option loses value over time, we can use Theta to approximate how much value it loses each day. what is delta gamma theta vega in options Learn more about your ad choices. Visit megaphone.fm/adchoices
Friday · 8 min
What are forward rates? What are forward rate agreements? What is an FRA?
In todays video we will learn about forward interest rates and a derivative called a forward rate agreement or FRA. These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle What are Forward Rates? A forward rate is an interest rate implied for periods of time in the future by zero-coupon bonds. For example, the market implied yield on a three-month Treasury bill three months from now is a forward rate. If we know what the three-month zero-coupon Treasury bill rate is and what the six-month zero-coupon Treasury bill rate is, we can back out what the market is implying as the yield on a three-month Treasury bill three months from now. To calculate forward rates we just need the zero-coupon yield curve. What are Forward Rate Agreements? A forward rate agreement (FRA) is an over-the-counter agreement to borrow a fixed amount of money at a fixed interest rate at a specified future time period. Banks and large corporations can use FRAs to hedge future interest rate exposures. The buyer hedges against the risk of rising interest rates, while the seller hedges against the risk of falling interest rates. Speculators can use FRAs to make bets on future changes in interest rates. Rates in the future will usually be different from the implied rate at the time you entered into a forward-rate-agreement, giving rise to gains or losses on the agreed transaction. What is an FRA? An FRA is an abbreviated term for Forward Rate Agreement Learn more about your ad choices. Visit megaphone.fm/adchoices

Showing 101–120 of 141 episodes