Kevin Davitt, John Hiatt, Cboe - Relative To The Overall Portfolio, Small Allocations To Tail Risk Ideas Can Have An Outsized Impact | #279

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 13 January 2021

⏱️ 67 minutes

🔗️ Recording | iTunes | RSS

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Summary

In episode 279, we welcome our guests, Kevin Davitt and John Hiatt, both of whom work for the Cboe as the Senior Options Institute Instructor and VP of Derivatives Strategy, respectively. In today’s episode, we’re talking about options, the VIX, and tail risk strategies. 2020 saw elevated volatility and record levels of option volume, and Kevin and John give us their perspective on this activity. We start with some basics of the VIX, how investors use and misuse it, and what the VIX says about the market over time. Then we get into tail risk strategies. We cover how investors should implement them, how to evaluate their success, and how these strategies can have an outsized impact on your portfolio. As we wind down, Kevin and John discuss ways to implement these types of strategies in a portfolio and best practices to communicate these strategies with your clients. Please enjoy this episode with Cboe’s Kevin Davitt and John Hiatt. This episode is sponsored by Masterworks. Masterworks is opening the doors to top-tier, blue-chip art investments to everyone. Use Promo Code “MEB” to skip their 15,000 person wait list. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mepp Faber 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 or its affiliates. For more information opinion of Cambria Investment Management or its affiliates.
0:33.4	For more information, visit Cambria Investments.com.
0:35.8	Howdy, howdy friends.
0:40.7	Great show.
0:41.6	We have two phenomenal guests today from
0:43.8	CBOE one is the senior options Institute instructor and the other is the VP of
0:48.6	derivatives in today's episode we're talking about options, the Vicks, tail risk strategies.
0:54.4	2020 has seen elevated volatility in record levels of option volume, and our guests give us
0:59.5	their perspective on this crazy year.
1:01.8	We start with some basics of all in the Vicks, how investors use and misuse it,
1:06.0	and what the Vicks says about the market over time.
1:09.0	Then we get into tail risk strategies.
1:11.0	As we wind down, we discuss ways to implement these types of strategies in a portfolio and best practices to communicate these strategies with your clients.
1:18.0	This episode is brought to you by 10 East. Long time listeners know I've invested in private markets
1:24.4	quite a bit myself but with access to these markets broadening it can be hard to
	...

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