Join Kris Sidial, founder of the Ambrus Group, and Brent Kochuba, founder of Spot Gamma, as they dissect the intriguing world of volatility trading. Kris breaks down long volatility strategies and the psychological hurdles traders face during market chaos. They touch on the August 2023 volatility spike and the evolving derivatives market. With insights on retail trading dynamics and the importance of tail risk hedging, this discussion is a must-listen for anyone wanting to grasp the nuances of making money amid market turmoil.
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question_answer ANECDOTE
Trading During Market Crashes
During market crashes, time slows down, and every tick feels crucial.
The emotional rollercoaster of P&L swings demands stepping back for perspective.
volunteer_activism ADVICE
Planning for Market Stress
Have a plan for market meltdowns, including quantitative and discretionary frameworks.
Model your book's performance under different market shocks.
insights INSIGHT
Tail Risk Fund Goals
Tail risk funds aim for explosive returns during crashes, minimizing losses in normal markets.
The goal isn't options expiring in the money, but profiting from repricing risk.
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In this episode of Excess Returns, Jack Forehand and special guest host Brent Kochuba dive deep into the world of long volatility and tail risk strategies with Kris Sidial, founder of the Ambrus Group. Kris shares invaluable insights from his experience managing volatility-focused strategies and navigating major market events.
🔑 Key Topics Covered:
How long volatility strategies work and their role in investment portfolios
Behind-the-scenes look at managing vol strategies during market crashes
The August 2023 volatility event and what really happened
Evolution of the derivatives market and its impact on trading
The truth about market liquidity and short volatility positioning
How retail options trading has changed market dynamics
Kris provides a fascinating glimpse into how vol traders operate during market stress events, explaining how these strategies aim to deliver explosive returns during market crashes while minimizing losses during normal conditions. He also discusses the psychological challenges of running these strategies and the importance of having both quantitative and discretionary elements in volatility trading.
Whether you're an institutional investor, retail trader, or just interested in understanding market dynamics better, this episode offers valuable perspectives on an often misunderstood corner of the investment world.
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