In this episode of Forward Guidance Benn Eifert, Founder & CIO of QVR Advisors joins the show for a deep dive discussion on all things volatility. As markets are all down year to date, many investors have been surprised with the orderly selling and lack of increase in the VIX. Luckily we have Benn on the show to share the role of put options in this market, wether or not macro matters for volatility traders and volatility at both the single stock and index level.
We also discussed the past two years of stimulus induced retail options trading, how market structure has evolved, the best hedges for a slowly falling market and when we could expect a market bottom. To hear that, you'll have to tune in!
--
Follow Benn Eifert on Twitter https://twitter.com/bennpeifert
Follow Jack on Twitter https://twitter.com/JackFarley96
Follow Blockworks on Twitter https://twitter.com/Blockworks_
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/
--
(00:00) Introduction
(00:15) Background
(05:10) The Rise (And Fall?) Of Retails Options Traders
(08:50) Put Options' Role In This Year's Viscous Sell-Off
(13:57) The VIX
(19:29) The Pricing of Tail Risk
(24:32) Best Hedges For A Slowly Falling Market
(28:00) Single-Stock Volatility
(33:34) How Responsive Are Options Market Makers?
(39:58) Credit and Treasury Volatility
(48:11) Options Expiry ("OpEx")
(55:35) Common Options Mistakes
(1:01:00) The Macro
(1:05:50) Does The VIX Have To Spike In Order For Stocks To Bottom?
--
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.