2min snip

Odd Lots cover image

Harley Bassman on Why the Big Moves in the Bond Market Are Done

Odd Lots

NOTE

Managing Convexity Through Option Selling

The speaker typically prefers owning convexity and optionality but sells when the market is not moving much. They highlight the challenge of buying and selling optionality at specific price levels. To manage convexity, one can consider selling covered calls to convert potential gains to current income and limit both upside and downside risk on a stock portfolio.

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