Benn Eifert

Benn Eifert, managing partner at QVR Advisors and a derivatives trading expert, discusses the explosive rise of retail participation in derivatives post-pandemic. He emphasizes the risks of following trading advice from social media influencers and highlights the evolution from traditional equity strategies to innovative options trading. The conversation dives into the complexities of options trading, the impact of algorithmic execution, and the troubling myths surrounding the 'guaranteed' returns from selling premiums, all while reshaping the financial landscape.

Benn Eifert of QVR Advisors, a savvy market strategist, dives into the latest shifts in trading dynamics. He discusses how retail traders have flooded the options market, particularly on TikTok, but notes a surprising silence from social media influencers amid recent volatility. Eifert analyzes the correlation between geopolitical events and trader confidence while exploring innovative concepts like the 'Terminal Olympics' for traders. He emphasizes the need for informed decision-making in an increasingly complex trading landscape.

Benn Eifert, a volatility expert from QVR Advisors, dives into the tumultuous effects of Trump's tariffs on market stability and economic strategies. He critiques the administration's trade policies, emphasizing their complex impact on the stock market. The discussion also highlights how investors are navigating today’s volatility, focusing on the shift from buying to selling options. Eifert breaks down structured notes and leveraged ETFs, revealing hidden costs and risks, all while examining how market narratives shape investor behavior.

Benn Eifert, CIO and Managing Partner at QVR, offers deep insights into today’s volatility regime. He discusses how market structure influences outcomes more than macroeconomic factors. Eifert highlights the fragmented liquidity and the breakdown of correlations, stressing that the path of market movements is more significant than their magnitude. The conversation dives into the rise of zero-day options and their implications on trading strategies, while also examining the unique dynamics of retail trading and the evolving landscape of financial markets.

Benn Eifert, Managing Partner at QVR Associates and an expert in volatility-focused hedge fund strategies, breaks down misconceptions surrounding derivatives and volatility. He discusses the intricacies of risk management in turbulent markets, highlighting challenges of tail hedges and the allure of 'free lunch' finance. Eifert also critiques Stephen Miran’s tariff arguments, exploring the interplay of trade, currency value, and the complexities of U.S. economic positioning. Tune in for insights that demystify options trading and explain the real cost of portfolio protection.

Benn Eifert, Managing Partner of QVR Advisors, shares his journey of building a $2 billion hedge fund. He emphasizes that trading skill alone isn't enough; success also hinges on interpersonal communication, operational management, and marketing. Eifert discusses the rise of pod shops in the hedge fund space and the importance of authenticity in social media. He highlights diverse interests that foster relationships and the complexity of options trading, cautioning against the democratization of investment strategies while navigating their inherent risks.

Benn Eifert, Founder and CIO of QVR Advisors, dives into the chaotic world of market manias. He reveals how the hype of meme stocks like AMC and GameStop pales in comparison to the reckless strategies used by institutional investors in the crypto realm. Eifert discusses the psychological drivers behind investor behavior and the dangerous consequences of ignoring risk management. He highlights the vulnerabilities of tech stocks during booms and offers insights on navigating the complexities of today's volatile market.

Benn Eifert, Founder and Managing Partner of QVR Advisors, dives into the complexities of today’s volatility markets with a data-driven perspective. He shares insights on the unintended consequences of crowded option strategies, notably how risk-managed ETFs may underperform traditional portfolios. Eifert discusses the vanishing volatility risk premium since 2012 and the impact of structural flows on expected returns. With an eye on evolving trading strategies, he highlights the need for adaptive risk management in these dynamic markets.

Today I am speaking with Benn Eifert, founder and CIO of QVR Advisors. Benn is my first repeat guest on the podcast, making his first appearance in Season 2. When I asked listeners who they wanted on for Season 3, he was high on the list. In this episode, we take things in a bit of a different direction. Rather than a normal interview, I use this opportunity to ask Benn about his opinion on a number of different trade ideas, from covered calls to shorting VIX ETPs. Benn walks me through the subtleties of each trade and why the PnL of what might look like a simple trade can be incredibly nuanced. Towards the end of the conversation we turn to broader market topics and discuss the general impact of structured product desks and options dealers as well as Benn’s view as to whether March 2020 will create a lasting impact on volatility markets. I hope you enjoy my conversation with Benn Eifert.

I am joined today by Benn Eifert, founder of QVR Advisors.  QVR specializes in managing option-based strategies and Benn describes what he does as volatility investing. We quickly wade into the deep end with this one.  Benn schools me on relative value investing and dismisses my favored mental model of style premia for what he prefers to call “the Star Wars framework.” We chat about volatility ETPs, their impact on the volatility landscape, and how the market has changed since February 2018.  And with some spectacular option-driven blow-ups in the last couple of years, I ask Benn for his guidance on how he would think about due diligence in the space. Finally, while Benn deals exclusively with institutions at QVR, I get his thoughts on how volatility investing might play a role for individual investors.  We go deep with this one.  So let’s dive in.