Animal Spirits Podcast

Talk Your Book: Hedging Your Portfolio with Options

Apr 29, 2024
Eric Metz, President and Chief Investment Officer of SpiderRock Advisors, discusses covered call performance, tax benefits of options, and option-overlay growth. They explore retiring baby boomers' impact, customization in financial strategies, and managing concentrated risk with exchange fund replication.
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ANECDOTE

First Client's Advice

  • Eric Metz's first client advised him to vertically integrate his derivative asset management with a TAMP.
  • This advice led to building the infrastructure and tech that catered to advisor needs and ultimately SpiderRock's success.
INSIGHT

Bull Market Impact

  • The bull market contributed to SpiderRock's success by increasing the number of clients with concentrated positions.
  • These clients needed solutions to manage risk and taxes around their holdings, leading them to SpiderRock.
INSIGHT

Covered Calls for Liquidation

  • Covered calls are often used for income, but they can also be used for strategic liquidation.
  • This approach allows clients to manage concentrated positions and reduce taxes.
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