Patrick Boyle

Patrick Boyle
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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.orgDISCLAIMER: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/3bTeqedPatreon: https://www.patreon.com/PatrickBoyleOnFinanceWebsite: https://www.onfinance.org/Instagram: https://www.instagram.com/patrickeboyle/BlueSky: https://bsky.app/profile/pboyle.bsky.social

  1. 20 min ago

    How Big Tech Is Quietly Taking Over AI (Without Mergers)

    😎 Get an exclusive 15% discount on Saily data plans! Use code BOYLE at checkout. Download Saily app or go to https://saily.com/boyleIn the race to dominate generative AI, Big Tech firms haven’t just been building, they’ve been buying. But there’s something strange about most of the deals that they have struck. Companies like Meta, Microsoft, Amazon, Google, and Nvidia are embedding themselves deep within the AI ecosystem through strategic investments, exclusive partnerships, and talent acquisitions- with deals that stop just short of formal takeovers, but the economic impact of these deals it turns out – is indistinguishable from full control.Drayton D'Silva Substack Article: https://enterprisevalue.substack.com/if-i-did-itPatrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.socialBusiness Inquiries ➡️ sponsors@onfinance.orgPatrick Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Google Podcasts: https://tinyurl.com/62862nveJoin this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

    How Big Tech Is Quietly Taking Over AI (Without Mergers)

  2. 1 hr ago

    Germany's Historic Debt Deal!

    Go to https://surfshark.com/boyle for 4 extra months of SurfsharkEuropean markets rallied sharply this week as German borrowing costs soared after the country’s new leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defense.The interest rate on German government bonds saw their biggest daily increase since October 1998.The Dax 30 index, which tracks the largest German companies, rose by 3.5% as stock prices also leapt in other European markets amid hopes that a massive boost in European spending on defense and infrastructure would kickstart the region’s lagging economy.Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.socialBusiness Inquiries ➡️ sponsors@onfinance.orgPatrick Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Google Podcasts: https://tinyurl.com/62862nveJoin this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

    Germany's Historic Debt Deal!

  3. 2 hr ago

    America's Shopping Addiction!

    Ad: 🔒Remove your personal information from the web at https://joindeleteme.com/BOYLE and use code BOYLE for 20% off 🙌 DeleteMe international Plans: https://international.joindeleteme.comFor decades, the American consumer has powered not just the world's biggest economy but the entire global economy. According to the World Bank – Americans make up around one third of global consumer spending but are only 4% of the global population. We should only be so surprised by this – Americans are amongst the most productive workers in the world and thus are amongst the best paid – the fact that they are both busy and highly paid makes them naturally big consumers.In today's video we look at how tariffs, the end of the de minimis exemption and lower consumer conference may affect the American consumer.Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.socialBusiness Inquiries ➡️ sponsors@onfinance.orgPatrick Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Google Podcasts: https://tinyurl.com/62862nveJoin this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

    America's Shopping Addiction!

  4. 3 hr ago

    The South Sea Bubble - The First Financial Crash

    Try Rocket Money for free: https://RocketMoney.com/Patrick #rocketmoney #personalfinance 1720 was a year of two bubbles and a plague. The bubbles were the Mississippi Company in France –and the South Sea Bubble in England. In September 1720 - when the bubble burst, England was plunged into an economic and political crisis. This was one of the first examples of a financial boom and bust and was the event that gave rise to the use of the term bubble to describe a spectacular market failure.Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC Ways To Support The ChannelPatreon: https://www.patreon.com/PatrickBoyleOnFinanceBuy Me a Coffee: https://www.buymeacoffee.com/patrickboyleVisit our website: https://www.onfinance.orgFollow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.socialSources:Money For Nothing by Arthur Levinson: https://amzn.to/3PUbbcVThe King, the Crook, and the Gambler by Malcolm Balen: https://amzn.to/3CFq7bMThe Life of Isaac Newton by Richard Westfall: https://amzn.to/4hfXbWUManias Panics & Crashes - Kindelberger: https://amzn.to/40xOrnXBusiness Inquiries ➡️ sponsors@onfinance.orgPatrick Boyle On Finance Podcast:Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0bApple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313Google Podcasts: https://tinyurl.com/62862nveJoin this channel to support making this content:https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join Learn more about your ad choices. Visit megaphone.fm/adchoices

    The South Sea Bubble - The First Financial Crash

  5. 4 hr ago

    Pricing Options Using the Binomial Tree (Risk Neutral Valuation Approach)

    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/PatrickEBoyleIn finance, the binomial options pricing model provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and Rubinstein in 1979, six years after the Black Scholes model. Essentially, the model uses a "discrete-time" (lattice based) model of the varying price over time of the underlying financial instrument.The Binomial options pricing model approach has been widely used since it is able to handle a variety of conditions for which other models cannot easily be applied. This is largely because the model is based on a description of an underlying instrument over a period of time rather than a single point in time. As a consequence, it is used to value American options that are exercisable at any time in a given interval as well as Bermudan options that are exercisable at specific instances of time. Being relatively simple, the model is readily implementable in computer software or even in spreadsheets like Excel. Although computationally slower than the Black–Scholes formula, it is more accurate, particularly for longer-dated options on securities with dividend payments. For these reasons, various versions of the binomial model are widely used by practitioners in the options markets.The Risk-Neutral Binomial Tree ApproachThe concept of a portfolio made up of some portion of stock and some portion of a derivative on that stock gives rise to the ability to generate equivalent cash flows at end nodes of binomial trees, and this certainty of cash flows allows us to discount the cash flows at the risk-free rate. The ability to discount cash flows in the future at a known risk-free rate gives us the concept of risk-neutral valuation. Risk neutral valuation is a powerful concept in derivatives pricing which enables valuation of assets based on their expected payoffs at different points in time and with different scenarios of underlying asset price movements. Risk-neutral valuation is applicable whenever you can create a portfolio including the underlying plus a derivative on the same underlying. It cannot be extrapolated to find the value of derivatives on other underlyings. It relies on the portfolio instruments having a level of dependency on one another.This model is very flexible and powerful because we don’t need to know the real probability of the upside scenario, or the real likelihood of the downside economic scenario—it is not required to maintain our certainty of cash flows at the end point. An easy mistake to make is to confuse this constructed probability distribution with real-world probability. They will be different, but the method of risk-neutral pricing is, like many other useful computational tools, convenient and powerful. The approach of risk-neutral valuation makes sense for valuation purposes but only works when all of the instruments included in the valuation model depend on the same underlying and thus are exposed to the same risks, though held in different proportions. We are pricing the option in terms of the underlying stock, thus risk preferences are taken into account in the pricing of the underlying. The risk-neutral binomial tree approach is mathematically equivalent to the portfolio approach previously covered, and gives us the exact same valuation. The risk neutral binomial tree valuation approach to value the derivative, f, is as follows.With some algebra, you can show that the risk-neutral formula is mathematically equivalent to the portfolio approach where  of shares is calculated to generate riskless outcomes at maturity, T.Although we are not making any assumptio Learn more about your ad choices. Visit megaphone.fm/adchoices

    Pricing Options Using the Binomial Tree (Risk Neutral Valuation Approach)

  6. 6 hr ago

    Delta Neutral Portfolios - The Options Greeks - Options Trading Tutorial

    Learn more about your ad choices. Visit megaphone.fm/adchoices

    Delta Neutral Portfolios - The Options Greeks - Options Trading Tutorial

  7. 6 hr ago

    Applied Portfolio Management - Class 3 - Equity Investment Management

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    Applied Portfolio Management - Class 3 - Equity Investment Management

  8. 7 hr ago

    How to Price Options using a Binomial Tree (The Portfolio Approach)

    How to Price Options using a Binomial Tree. The portfolio approach.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/PatrickEBoyleThe Binomial Tree approach to options pricing involves constructing a diagram of the possible paths of the stock price over the life of the option and then calculating the present value of the final cash flows to determine the current option price.We will start with a simplified view of the world and explain the approach, then we will slowly adjust the model to make it more and more realistic.The Portfolio ApproachFor our first example we will start with an underlying that has a price of $50, and we know at the end of three months that the underlying will be at one of two prices, either $70 or $30 (this "foreknowledge" is in fact a very big assumption, but stay with us for a while and we will improve this admittedly hugely unrealistic assumption). We will price a European Call with a strike of $50, and one month to expiration. The only additional piece of information that we need in order to solve this problem is the interest rate, which we will set at 5%. The first step is to draw our tree putting in the spot price S0, the two ending prices of the underlying at T ST and the value of the call at expiration given the two ending prices c. If we know with certainty (a big assumption) that there are only two outcomes for the stock price at T and we assume that no arbitrages are freely available in marketplaces (a much better assumption) we can set up a portfolio of S and the derivative c on that same underlying where there is no uncertainty about valuations at T maturity.The portfolio will be some amount (delta) of S and short one call option c. If we set the two portfolios as equal and solve for delta The portfolio is riskless if there is a value for delta where the two portfolios have an identical value at maturity in all possible scenarios. In either case above, the portfolio at expiration is worth $15. Because this portfolio is riskless we can discount it at the risk free rate (5%) for one months (1/12 of a year) to find the present value of the portfolio. So far, we have found the interesting result that if we know the two next possible steps in an underlying assets price and we know the risk free interest rate we can price a derivative. The only problem we have is that our first assumption is quite unrealistic, but as you will see, we can keep working with this approach and make more reasonable assumptions as the chapter progresses.NotationAs we move forward with binomial valuations, we will always be assuming a portfolio at each node knowing that some value for delta makes the portfolios equivalent at time T. It is important to note that we are not valuing the option in absolute terms. We are calculating its value as implied by the price and volatility of the underlying and the risk free rate. The probabilities of up and down movements are already incorporated in these prices and we don’t need to take them into account again when pricing the option which is based on the stock. All of our methods of valuing derivatives share this approach. People's expected returns for underlyings are irrelevant in this calculation, as all we are saying is that assuming the price for the underlying is X, then Y is the only fair price for the option, any other price would allow for arbitrage opportunities between the price of the underlying and the derivative.Watch tomorrows video to learn the risk neutral approach to pricing binomial trees. Learn more about your ad choices. Visit megaphone.fm/adchoices

    How to Price Options using a Binomial Tree (The Portfolio Approach)
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About

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.orgDISCLAIMER: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/3bTeqedPatreon: https://www.patreon.com/PatrickBoyleOnFinanceWebsite: https://www.onfinance.org/Instagram: https://www.instagram.com/patrickeboyle/BlueSky: https://bsky.app/profile/pboyle.bsky.social

Information

  • Creator
    Patrick Boyle
  • Years Active
    2026
  • Episodes
    148
  • Rating
    Clean

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