Schwab Network Noel Smith: ‘Rent the Market’, Don’t ‘Own the Market’
6 snips
Feb 13, 2025 
Noel Smith, CIO at Convex Asset Management and an expert in options strategies, shares his insights on navigating market volatility. He advocates for ‘renting the market’ rather than ‘owning’ it, emphasizing risk management and the importance of volatility catalysts. Highlighting his success with Palantir, he discusses short options strategies in VIX futures and market dispersion. Listeners can learn about balancing index volatility and individual stock positions to capitalize on emerging trading opportunities.
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Selling VIX Puts
- Sell out-of-the-money VIX puts to profit from the current market range.
- This strategy can also fund long VIX call spreads as a hedge.
Volatility Dispersion
- Volatility dispersion presents a good trading opportunity.
- Shorting index volatility while going long on volatile single stocks within that index can be profitable.
Palantir Example
- Palantir was a winning stock pick, demonstrating the potential of individual stocks.
- Unexpected price swings in single names can significantly benefit a portfolio.