The Value Perspective The Value Perspective with Erik Kobayashi-Solomon
Erik Kobayashi-Solomon, author of The Intelligent Option Investor and Forbes contributor, joins Juan and Andy this week to discuss value investing and options. They discuss put options in the context of value, risks retail investors take with options and a dissection of the Black-Scholes Model.
EPISODE MINUTES:
01:08 Introduction
01:52 Erik's background
04:31 What is an option? How do they fit into value investing?
11:46 What is the Black-Scholes model and why isn't it the end-all-be-all for pricing options?
17:10 How can price forecasting be used in value investing? How does it fit in with valuations?
23:09 Why does the industry appear to be obsessed with pinpointing valuations to a certain figure rather than a range?
25:30 How do tail events work within option investing?
29:56 Selling put options instead of buying an underlying stock
37:30 Should retail investors have access to options?
42:30 Book recommendations and a unfavourable outcome that was a result of poor decisions
Book recommendations:
- The Intelligent Option Investor by Erik Kobayashi-Solomon
- The Essays of Warren Buffet
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