We might think of the hedge as a race between the loss in time value of the June 100 calls and the cash flow resulting from the adjustments, with the theoretical pricing model acting as the judge.
Under the assumptions of the model, if options are purchased at less than theoretical value, the adjustments will win the race; if options are purchased at more than theoretical value, the loss in time value will win the race.
The conditions of the race are determined by the inputs into the theoretical pricing model.
- market trends (and, occasionally, history)
- emerging technologies and deep tech
- startups and venture capital
- corporate strategy and business dynamics
- product development and marketing
- finance and (mainly behavioral) economics
- cognitive psychology and neuroscience
- the future of work and career
I occasionally add a personal note to them.
The whole collection is available here.