There’s no Stupid Options questions, just Stupid Options Courses, SurgiFi attends Benn Eifert’s Class

Summer’s nearly over and class is definitely back in session for this episode, as we're about to get schooled on options and trying to separate the scams from the science. This week we're delivering the long-awaited episode with Dr. Benn Eifert, a Derivative appointed Jedi of Volatility from QVR Advisors, and Dr. David Rhoiney, who overcame being homeless to become a robotic surgeon who is learning the financial ropes and sharing his journey on Twitter from Surgifi.

David has questions: what do you do with all the Greeks, can’t you tell a trend is starting by analyzing options volume, what about skew? And Benn has the answers in this entertaining 70-minute lively back and forth. They touch on being an independent thinker like David to come to your own investing conclusions, whether the options courses out there are knowingly selling lies, or more innocently peddling luck and lottery tickets. Why Black Scholes doesn’t really do anything except normalize prices…meaning there’s no secret math that lets you ‘figure out’ options. How trend following only works 25% of the time, Nancy Pelosi’s high fee LEAPS trades, Nassim Taleb’s tail hedges, why it counter-intuitively makes sense to add a losing asset to your portfolio, and so much more! Plus, we discuss should retail investors walk away from options and how not to get caught up in the index funds cult — SEND IT!

Chapters:

00:00-01:54 = Intro

01:55-21:52 = Greeks, Bid/Ask, a Tech Stack… where do you even get started?

21:53-39:36 = Implied Volatility doesn’t tell you anything about what to do

39:37-58:36 = Someone selling you a trade based on skew = run the other way

58:37-01:12:15 = Pelosi’s LEAPS? Taleb’s Tail Hedges? Why add a losing asset?

01:12:16-01:17:22 = Hottest takes: just walk away from Options, steak is overrated, and the Devil’s nipples

From the episode:

Benn Eifert's Tweet on adding Tail Risk

Surgifi's newsletter

Follow along with Benn Eifert on Twitter @bennpeifert and David Rhoiney on Twitter @FiSurgi. For more information on QVR Advisors check out their website www.qvradvisors.com and for more on Surgifi visit surgifi.com

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer