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, 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, 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, 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.

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.

We’re rewinding to Season 3, Episode 3 to chat with Benn Eifert, founder of QVR.   Benn was my first repeat guest and this is probably one of our more popular episodes. Instead of the usual interview format, I called this episode “Bad Ideas with Benn Eifert,” and basically just asked him a bunch of questions about naive option trades and whether they are a good idea or not. For anyone starting their journey with options or volatility, the whole episode is a must listen. The clips I chose here were selected because I thought they provided a really good cross-section of topics in the world of options while highlighting one important common thread: the risk of unintended bets.  I think this is one of the most universally important concepts in trading and investing, and Benn really drives the points home here as we cover topics ranging from writing options for income to why VIX minus realized doesn’t mean what you think it does.  The subtle through line is the reminder that it’s what we don’t know we don’t know that will eventually get us in trouble.

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.

Benn Eifert, Managing Partner of QVR Advisors, shares insights from his experience managing $2 billion in assets. He reveals that trading skills alone don't cut it for hedge fund success, emphasizing the importance of operational and interpersonal skills. Eifert discusses the rise of pod shops for attracting talent and assets, as well as the increasing trend of separately managed accounts for sophisticated investors. He also dives into the growing use of derivative strategies in public funds, highlighting their complexities and risks for retail investors.

Benn Eifert, CIO of QVR Advisors and an expert in volatility and derivatives, dives into the retail trading boom, highlighting its profound influence on markets. He unpacks the GameStop saga and the mechanics behind short squeezes, revealing the surprising sophistication of retail traders. Eifert discusses how social media, especially platforms like Reddit, has reshaped trading behavior. He also addresses regulatory challenges faced by brokerages like Robinhood and explores the future landscape of retail trading, including the rise of copy trading platforms.

Benn Eifert, CIO at QVR Advisors, shares his expertise on the recent stock market boom driven by both retail and institutional traders. He breaks down how SoftBank's aggressive options strategies influenced the market. Moreover, Eifert highlights the explosive rise of retail trading, particularly through platforms like Robinhood, and its impact on tech stocks. He discusses the gamified nature of trading fostered by social media communities like WallStreetBets and the risks associated with speculative options trading. It's a fascinating analysis of today's trading landscape!