Cem Karsan, Aegea Capital - 30 Day Vol Tends To Be Overbid And You Have Extended Supply In The Back Of The Curve Historically | #252

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 30 September 2020

⏱️ 57 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode 252 we welcome our guest, Cem Karsan, Founder and Senior Managing Partner of Aegea Capital Management. In today’s episode, we’re getting deep into the weeds of market volatility. We hear from Cem about cutting his teeth in market making and S&P 500 equity options and eventually launching a strategy focused on long-volatility. We get into structural inefficiencies around market vol that tend to increase during times of market stress. We talk about what the year has looked like so far from his perspective, and the feedback loop and risks associated with liquidity, compressed risk premia, and a low-yield environment. We chat about what he sees markets pricing in and risk perceptions around the election, and some trade ideas to potentially take advantage of what he believes is mispriced volatility in the December to January period. All this and more in episode 252 with Aegea’s Cem Karsan. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mebb Faver Show, where the focus is on helping you grow and preserve your wealth.
0:11.0	Join us as we discuss the craft of investing and
0:13.5	uncover new and profitable ideas all to help you grow wealthier and wiser.
0:17.2	Better investing starts here.
0:18.8	Met Faber is the co-founder and chief investment officer at Cambria Investment Management.
0:23.3	Did it industry regulations, he will not discuss any of Cambria's funds on this podcast.
0:27.2	All opinions expressed by podcast participants are solely their own opinions and do not reflect the opinion of
0:31.2	Cambria Investment Management or its affiliates.
0:33.4	For more information, visit Cambria Investments.com.
0:35.6	What's up, friends, super interesting show for you today our guest is founder and senior
0:45.1	managing partner of a Gia capital management in today's chat we're getting deep
0:50.0	into the weeds of market volatility we hear from our guests about cutting his teeth in market
0:55.0	making and S&P 500 equity options and eventually launching a long-valls strategy. We get into
1:00.4	structural inefficiencies around Market Vol,
1:02.8	that tend to increase during times of market stress.
1:05.5	We talk about what the years look like so far,
1:07.6	from his perspective, and the feedback loop
1:09.9	and risks associated with liquidity,
1:12.1	compressed risk premium in a low-yield environment.
1:15.7	We chat about what he sees markets are pricing in,
1:18.2	and risks perceptions around the election,
1:20.6	and some trade ideas to potentially take advantage of what he believes is misprice volatility in the December to January period.
	...

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