

Alpha Exchange
Dean Curnutt
The Alpha Exchange is a podcast series launched by Dean Curnutt to explore topics in financial markets, risk management and capital allocation in the alternatives industry. Our in depth discussions with highly established industry professionals seek to uncover the nuanced and complex interactions between economic, monetary, financial, regulatory and geopolitical sources of risk. We aim to learn from the perspective our guests can bring with respect to the history of financial and business cycles, promoting a better understanding among listeners as to how prior periods provide important context to present day dynamics. The “price of risk” is an important topic. Here we engage experts in their assessment of risk premium levels in the context of uncertainty. Is the level of compensation attractive? Because Central Banks have played so important a role in markets post crisis, our discussions sometimes aim to better understand the evolution of monetary policy and the degree to which the real and financial economy will be impacted. An especially important area of focus is on derivative products and how they interact with risk taking and carry dynamics. Our conversations seek to enlighten listeners, for example, as to the factors that promoted the February melt-down of the VIX complex. We do NOT ask our guests for their political opinions. We seek a better understanding of the market impact of regulatory change, election outcomes and events of geopolitical consequence. Our discussions cover markets from a macro perspective with an assessment of risk and opportunity across asset classes. Within equity markets, we may explore the relative attractiveness of sectors but will NOT discuss single stocks.
Episodes
Mentioned books

Nov 5, 2024 • 50min
Shailesh Gupta, Head of Structural Alpha, Simplify Asset Management
Shailesh Gupta, Head of Structural Alpha at Simplify Asset Management, shares insights from his expertise in derivatives and carry strategies. He discusses the intriguing concept of "carry" in financial markets, explaining its significance in option trading. Shailesh outlines risk management lessons from the VIX products crisis and emphasizes innovative yield-enhanced ETF strategies. He also delves into navigating interest rate volatility and the dynamics of bond markets, providing listeners with a clear perspective on trading in today's challenging environment.

Nov 1, 2024 • 57min
Meb Faber, Founder and CEO, Cambria Investment Management
Meb Faber, Founder and CEO of Cambria Investment Management, shares insights on navigating market highs and the benefits of trend-following strategies. He argues that investing at all-time highs can be advantageous, citing data that supports continued uptrends. Meb emphasizes the significance of shareholder yield, especially in foreign markets, and discusses innovative tax strategies that optimize investment returns. The conversation offers valuable takeaways for managing risks and enhancing portfolio performance in a dynamic economy.

Oct 26, 2024 • 21min
The DOTS (Discounting of Trump Success)
The podcast dives deep into how Wall Street prices in the uncertainty surrounding the upcoming election and Trump's potential impact. It highlights the phenomenon of elevated option premiums reflecting the market's fear. Insights from betting platforms and early voting data add an intriguing layer to understanding election probabilities. The discussion also touches on the unusual scenario of high volatility coupled with low correlation in stock prices, unpacking its implications for investors. A compelling look at market behavior and political risk awaits!

5 snips
Oct 16, 2024 • 16min
Hedge When You Can, Not When You Have to
Discover why it's crucial to hedge during prosperous times rather than just when facing crises. The discussion addresses the patterns of implied volatility during major macro events like elections and Brexit. With a focus on navigating market uncertainty, it examines effective defensive trading strategies. Insights on the fluctuating S&P 500 emphasize the necessity of protective measures. The podcast also highlights various hedging strategies and the significance of proactive financial risk management in a volatile landscape.

8 snips
Oct 9, 2024 • 17min
The Opera of Option Prices
In a recent discussion, the hosts tackle China's bold economic measures and the resulting 'volatility shot' that shook global markets. They dissect the characteristics of price and volatility spirals while analyzing their implications. The conversation also touches on the current political climate in the U.S. and its influence on market dynamics, especially concerning VIX fluctuations. Strategies for hedging investments amid growing uncertainties are a key takeaway, inviting insights from the audience on governance and skepticism in politics.

Oct 5, 2024 • 16min
Option Prices are Singing
The discussion reveals how option prices can signal market movements and reflect risk premiums, much like a symphony in finance. It delves into gold and oil volatility amid geopolitical tensions, showcasing gold’s role as a safe haven. Insights into option pricing dynamics highlight the influence of supply and demand, with strategies for navigating today's economic uncertainties. The conversation also hints at the market's unease, suggesting that stock prices might lack safety margins given current conditions.

Sep 23, 2024 • 16min
ODTE? No, OTTD!
Delve into the intriguing world of zero-day-to-expiration (0DTE) options and their unique behavior during Fed decisions. Discover how the market reacts to intraday option pricing, particularly on significant dates like FOMC days. The conversation also sheds light on the VIX's fluctuations as the U.S. elections loom, revealing insights on market volatility and investment risks. With tips for navigating these dynamics, this discussion is both engaging and valuable for market enthusiasts.

28 snips
Sep 11, 2024 • 51min
Kris Abdelmessih, Co-Founder, Moontower AI
Kris Abdelmessih, Co-Founder of Moontower AI and a seasoned options trader, shares his rich experiences from market making to trading volatility. He discusses the critical importance of strong sell-side relationships and effective risk management strategies. Kris highlights the challenges faced when trading volatile ETFs, particularly referencing the April 2020 crude oil meltdown. He also delves into insights about micro-edge strategies and the evolving dynamics of trading in today's technology-driven markets.

Sep 9, 2024 • 14min
Elections Have (Vol) Consequences
Former US President Barack Obama shares insights on the consequences of elections, focusing on their impact on financial markets. He discusses the implications of market volatility around the U.S. presidential debate and reflects on past events like Brexit. Obama emphasizes the significance of risk management strategies, particularly in derivatives. The conversation highlights how election outcomes shape market behavior, with volatility measures like the VIX being influenced by changes in supply and demand.

Sep 3, 2024 • 15min
Lessons from the Rowdy VIX
Discover the intriguing dynamics of price discovery and liquidity in the financial markets. Delve into the significant disruption that occurred on August 5th, reshaping trading strategies in the S&P 500 options market. Explore the interconnectedness of equity and interest rate volatility, along with the evolving trends in VIX exchange-traded products. Learn how these elements affect market behavior and provide insights for navigating upcoming economic indicators and events.