The Market Huddle Thanksgiving Double Header Special! (Guests: Imran Lakha & Darren Dempsey)
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Nov 30, 2024 This week features Imran Lakha, founder of Options Insight and a former institutional options trader, who discusses innovative SPX option strategies and the intriguing MSTR self-reinforcing cycle. Joining him is Darren Dempsey, founding partner of Harkster AI, revealing how AI is revolutionizing research consumption in finance. Topics include navigating market volatility, the impact of AI on portfolio management, and clever insights into trading dynamics that can help listeners sharpen their investment strategies.
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Merrill Lynch in 2008
- Imran Lakha's team at Merrill Lynch successfully navigated the 2008 financial crisis by being long volatility.
- Their success was partly due to early warnings from the credit department and a boss who made a bold call to buy vol at 40.
Volatility Reset
- Implied volatility often rises before well-telegraphed events like elections, creating a volatility premium.
- This premium resets after the event, presenting an opportunity to short volatility.
VIX Trading
- Use VIX optionality, not futures, for better risk management in volatile markets.
- Structure trades to create leverage, minimizing potential losses and maximizing gains.