2021's Vol moves, 2022's outlook, Meme stocks, Option Flows and KAI with Cem Karsan

We're kickstarting the 2022 season of The Derivative with fan-favorite - Cem Karsan. In this episode, the FinTwit star better known as @jamcroissant and his calls on Gary and Gamma and Vol and Vanna, digs into the interesting 2021 Vol moves, what 2022 may look like in the vol space (not good…or good, depending on your positioning), how he actually trades flow and options in his KAI hedge fund, as well as a journey through all the things that make you go 'hmm.'

Tune in as Cem also highlights the three trading strategies that make up his firm’s offerings, a slightly different take on omicron, how he views the market’s movements as waves driven by flows, and more. Plus, as a bonus, you'll find out how Cem got stuck in a Bolivian salt flat!?

Topics discussed in this episode include:

How COVID accelerated a lot of trends in our lives, including the acceleration of VOL and VOL products
Option volumes dwarfing the actual volume of the things that they are on top of and tracking
What it means to have two-sided skew
How to play Meme stocks, and more!

Chapters:

00:00-01:32 = Intro

01:33-13:24 = Things that make you go Hmmm..

13:24-26:00 = 2021 Vol Movements

26:01-43:15 = Proxy Hedges, Vol compression, Finding the pain points & Illiquid Markets

43:15-01:03:36 = KAI: Riding the Volatility Flow

01:03:37-01:16:05 = What’s in store for Vol in 2022?

01:16:06-1:22:22 = Two Truths & a Lie

Additional resources discussed in this podcast:

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