The Outlier Trading Podcast Kris Abdelmessih: Using Options Volatility to Trade Smarter | The Outlier Podcast
Jul 30, 2025
Kris Abdelmessih, from Moontower AI, shares his expertise in using options volatility to enhance trading strategies. He discusses his pivotal career shift to independent trading, emphasizing the importance of humility and adaptability. Kris highlights how to measure market movements and navigate risk while managing options effectively. He also dives into the often-misunderstood concept of optionality, using real-world examples to illustrate its significance. Tune in for valuable insights on improving trading approaches and understanding market dynamics!
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Why Kris Left SIG
- Kris left SIG after being recruited by a floor trader who offered to back him with a larger share of P&L.
- He was motivated by the freedom and higher take-home despite smaller scale, and left on good terms with SIG.
Measurement, Not Prediction
- SIG taught Kris to calibrate conviction by measuring market signals, not overpredicting outcomes.
- The firm trained traders to treat trading as pricing liquidity and to apply skills across markets.
Normalize To Spot Meaningful Outliers
- Normalize observations to find true outliers by putting different assets on a common scale using implied moves.
- Trading is about spotting contradictions after coherent comparison, then debating if market pricing is justified.