Summer’s nearly over and class is definitely back in session for this episode, as we're about to get schooled on options and trying to separate the scams from the science. This week we're delivering the long-awaited episode with Dr. Benn Eifert, a Derivative appointed Jedi of Volatility from QVR Advisors, and Dr. David Rhoiney, who overcame being homeless to become a robotic surgeon who is learning the financial ropes and sharing his journey on Twitter from Surgifi.
David has questions: what do you do with all the Greeks, can’t you tell a trend is starting by analyzing options volume, what about skew? And Benn has the answers in this entertaining 70-minute lively back and forth. They touch on being an independent thinker like David to come to your own investing conclusions, whether the options courses out there are knowingly selling lies, or more innocently peddling luck and lottery tickets. Why Black Scholes doesn’t really do anything except normalize prices…meaning there’s no secret math that lets you ‘figure out’ options. How trend following only works 25% of the time, Nancy Pelosi’s high fee LEAPS trades, Nassim Taleb’s tail hedges, why it counter-intuitively makes sense to add a losing asset to your portfolio, and so much more! Plus, we discuss should retail investors walk away from options and how not to get caught up in the index funds cult — SEND IT!
Chapters:
00:00-01:54 = Intro
01:55-21:52 = Greeks, Bid/Ask, a Tech Stack… where do you even get started?
21:53-39:36 = Implied Volatility doesn’t tell you anything about what to do
39:37-58:36 = Someone selling you a trade based on skew = run the other way
58:37-01:12:15 = Pelosi’s LEAPS? Taleb’s Tail Hedges? Why add a losing asset?
01:12:16-01:17:22 = Hottest takes: just walk away from Options, steak is overrated, and the Devil’s nipples
From the episode:
Benn Eifert's Tweet on adding Tail Risk
Surgifi's newsletter
Follow along with Benn Eifert on Twitter @bennpeifert and David Rhoiney on Twitter @FiSurgi. For more information on QVR Advisors check out their website www.qvradvisors.com and for more on Surgifi visit surgifi.com
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