Gamma On Gamma On EP4: Gamma Godfather Cem Karsan's Second-Derivative Philosophy
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Dec 3, 2024 
Cem Karsan, known as the 'Godfather of Gamma' and an expert on volatility, joins Oliver Renick and Shane Skinner for an insightful discussion. They dive into the complexities of options trading, emphasizing the importance of second derivatives like Vanna and Charm. Cem challenges the phrase 'Tail Wagging the Dog,' arguing for a deeper understanding of market dynamics. They also tackle the role of interest rates, inflation, and even the intersection of populism with trading culture, ensuring an engaging and informative conversation.
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From CBOE Floor to Gamma Godfather
- Cem Karsan's journey into options began in 1998 at the CBOE.
- He witnessed the evolution of options from quarterly expirations to the complex market today.
Options: A 3D Market View
- Traditional market analysis views assets with a single value that goes up or down.
- Options provide a 3D understanding of asset characteristics and probabilities.
Options as Market Weather
- Options trading data provides a clearer picture of market dynamics.
- It reveals underlying forces like the weather in clouds affects ground conditions.