In this episode, we discuss:
- How to profit from large stock market selloffs
- Some of Zed Francis’s unique approaches to volatility trading
- Profiting from institutional volatility traders
- When to apply a discretionary approach
- The VIX ETF
- Helping clients to be cash efficient in their portfolios
- The need for liquidity during sharp market moves
Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.
Follow Jason on Twitter.
Check out our Systematic Investor series here, and our Global Macro series here.
IT's TRUE 👀 - most CIO's read 50+ books each year - get your copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book "The Many Flavors of Trend Following" here.
Learn more about the Trend Barometer here.
Send your questions to email@example.com
And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast.
Top Traders Unplugged wins award for ‘Best Trading Podcast’ and features among the ‘Top 20 Best Investing Podcasts in 2020’ by The Investors Podcast 🏆
00:00 - Intro
01:41 - Why should somebody add volatility or tail-risk strategies into their portfolio?
03:10 - Seeking a negative correlation to equities
06:16 - Can you explain what you call your ‘3 trading levers’?
08:11 - Can you breakdown your approach to combining ‘long gamma’ and ‘short Vega’?
13:40 - Do you aim to profit off institutional volatility sellers?
15:16 - Tell us about the short-vega side of your approach?
28:34 - The problems with some common long-volatility strategies?
36:24 - How do you think about the ratio between your long-gamma trades and your short-Vega trades?
38:02 - Do you want to explain your ‘Price is Right’ gameshow analogy for long gamma strategies?
40:57 - Do you think that a discretionary approach is always needed at times?
50:27 - How do you adjust if volatility persists longer-term?
55:36 - What are your thoughts on the VIX?
57:50 - How to help clients to achieve capital efficient accounts?
59:37 - How do you maintain capital efficient overlays and also maintain liquidity for rebalancing during a selloff?
01:04:18 - Does being a volatility expert give you a deeper insight into the global macro landscape?