

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

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.

Aug 27, 2024 • 40min
Kathryn Rooney Vera, Chief Strategist, StoneX Group Inc.
Kathryn Rooney Vera, Chief Market Strategist at StoneX, shares her inspiring journey from cleaning houses to mastering finance. She discusses her methods for identifying market value, highlighting the importance of forecasting growth and inflation. Kathryn advises on protective option strategies and explores the intriguing intersection of the utilities sector and AI. She emphasizes current economic dynamics, including the Fed's challenges with inflation and growth, and provides insights on effective investment positioning during market volatility.

Aug 20, 2024 • 14min
VIX Went Cray Cray
Dive into the world of market volatility as recent fluctuations in the VIX reveal hidden chaos beneath stable indicators. Discover how the yen's surprising rally impacted investor sentiment and asset valuations. The conversation touches on crowding as a catalyst for market disturbances and effective risk management strategies like put spread collars. It's a fascinating look at the interplay of currency dynamics and rising VIX levels, shedding light on broader implications for the financial landscape.

6 snips
Aug 19, 2024 • 50min
Vineer Bhansali, Founder and CIO, LongTail Alpha
Vineer Bhansali, founder and CIO of LongTail Alpha, recently conquered the grueling Badwater 135 ultra-marathon. In this engaging conversation, he compares the intense mental preparation of marathon running to navigating volatile financial markets. Vineer discusses the overconsumption of the Yen carry trade as a market catalyst, emphasizing the importance of risk management through derivatives. He advocates for incorporating insurance strategies into long-term portfolios, particularly amid market uncertainty and changing liquidity dynamics.


