In this episode, Benn Eifert joins the show to discuss derivative & volatility strategies, the biggest derivatives misconceptions, and flaws with Stephen Miran’s tariff arguments. We also delve into volatility risk under the Trump administration, how to think about VIX percentage moves, and much more. Enjoy!

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Timestamps:

(00:00) Introduction

(01:32) Understanding Volatility-Focused Hedge Funds

(04:12) Tools and Strategies in Volatility Trading

(11:21) The Rise of Derivative-Based ETFs

(19:03) Skale Ad

(19:27) The Rise of Derivative-Based ETFs (Con't)

(27:15) Risks and Misconceptions in Retail Options Trading

(32:06) Skale Ad

(32:36) Risks and Misconceptions in Retail Options Trading (Con’t)

(37:09) Options Trading

(41:07) Implied Probabilities and Market Misconceptions

(44:17) The Reality of Options Pricing Models

(47:06) Impact of Derivatives on the Market

(57:47) Navigating Volatility in the Trump Era

(01:01:01) Debating the Merits of Tariffs

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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.