Maggie Lake Talking Markets Episode 39: More Pain Ahead? With Jared Dillian.
Apr 11, 2025
Join Jared Dillian, editor of The Daily Dirtnap and founder of Jared Dillian Money, as he dives into today's market dynamics. He breaks down the lower-than-expected CPI number and its impact on the dollar, questioning the bond market's chaotic state. Explore the potential for gold, discuss options trading strategies in this volatile climate, and hear insights on the S&P’s future. Plus, don't miss his excitement about DJing at the Wet Republic pool party in Vegas!
AI Snips
Chapters
Transcript
Episode notes
China's Role in Bond Market Chaos
- Jared Dillian suspects China is selling US bonds as retaliation for tariffs, causing bond market turmoil.
- He finds this theory more plausible than others like basis trade issues.
Volatility and Bond Market Paradox
- Despite deflationary economic data favoring bonds, bonds unexpectedly sold off amid high volatility.
- Jared sells puts as VIX dropped from 60 to 38, capitalizing on falling volatility.
Options Strategy in High Volatility
- Avoid buying expensive call options during high volatility as it's a risky, 'ball crushing' approach.
- Selling options when they're expensive is generally a smarter strategy.