Yet Another Value Podcast September 2025 Random Ramblings
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Sep 25, 2025 Explore Trump's proposal to shift SEC reporting to semi-annual, shaking up trading opportunities. Delve into Elon Musk’s remarkable billion-dollar Tesla buy and its historical context. Understand the implications of fewer quarterly filings on market volatility and quant strategies. Discover reflections on improving as an investor while avoiding mindless practices, and tackle the challenges of judging those who invest in meme stocks. Join for an engaging discussion on macro shifts and evolving investment behaviors!
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Structural Rule Changes Create Alpha
- Changing SEC reporting from quarterly to semi-annual is a moderate structural change that can create market-wide alpha opportunities.
- Andrew Walker explains option skew and timing shifts could be systematically exploited by quants if reporting frequency changed.
Trade Option Calendar When Reporting Changes
- Sell options that currently price in quarterly earnings volatility and buy options that capture the new concentrated semi-annual earnings volatility.
- Andrew Walker suggests systematic trades in May/November versus August/March to capture expected repricing.
Secondary Effects Amplify Structural Shifts
- Structural shifts ripple beyond reporting to index flows and quant positioning like index kicks and pod-shop models.
- Walker highlights that moderates changes enable arbitrage by those who anticipate new mechanical behaviors.