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Keeping it Simple on the Road | Ep.8: Market-Making is Making Markets

Keeping it Simple with Simplify Asset Management

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The One by Two Call Spread

Mark O'Mara: Whenever you see something that is priced irrationally based on history, I feel it's compelled purchasing or selling whether it be going down or going up. He says the academic literature would treat that as an incredibly efficient market. But he thinks flows can dominate rationality because if you are an equity analyst, you do this kind of cash flow model in video. And then when you have these very improbable moves, people are short these options and they have to cover.

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