AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Gamma On
Gamma On EP5: Market Makers – Gods or Men? With Noel Smith
Dec 10, 2024
Noel Smith, an experienced options trader from Convex Asset Management, shares valuable insights into the world of options trading. He discusses the pivotal role of gamma in shaping trading strategies and his daily routine. Their conversation dives into the evolution of trading from physical floors to tech-driven algorithms and how this has changed profitability perceptions. Noel also explores the thriving post-Covid options market, emphasizing the importance of understanding market dynamics and the crucial balance between data and intuition for retail traders.
29:00
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The transition from traditional floor trading to digital platforms has created both challenges and opportunities for options traders, necessitating adaptability in strategies.
- Understanding the mechanics of dispersion trading offers retail traders valuable insights and potential profits by capitalizing on discrepancies between individual stock movements and the index.
Deep dives
The Evolution of Trading in the Options Market
The discussion highlights the significant changes in the options trading landscape, particularly with advancements in technology. Traders like Noel Smith have adapted over the years, transitioning from floor trading to an environment dominated by digital trading platforms. This evolution has resulted in both challenges and opportunities; while spreads have narrowed, making trades harder to execute profitably, the sheer volume of retail participation in options has surged. The ability to analyze and exploit price movements effectively is now paramount as traders navigate the complexities of a compressed volatility market.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode