Me in Words

Since most people (including myself) are imitators of people we admire, any new change to the way everyone does things has to come top down. The first people who has to accept the change ought to be the elites whom everyone admire and imitate.

I made the mistake of simply adopting change myself early. Since I was not widely admired or influential, often this led to me being too early of an adopter. I got made fun off until I stopped, and then suddenly somebody high up the status ladder suddenly started accepting the change, and then everyone started imitating them.

So I have decided to only adopt change in secret, and wait until the elites accept it. If they don’t accept it, I will simply enjoy the change in private if the change gives private benefits. If the change only benefits me until everyone accepts it, I will wait for it.

To be more concrete, this is how the above principle applies to value investing using options:

• If the implied volatility is low (< 50 IVR) for a value stock, buy an 84 delta 200+ DTE call.
  • When the implied volatility rises, sell a 16 delta 7 DTE call.
• If the implied volatility is high (> 50 IVR) for a value stock, sell a 16 delta 7 DTE put.