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The Intrinsic Value Podcast - The Investor’s Podcast Network

MI206: Options, Derivatives, & Volatility w/ Kevin Davitt

The Intrinsic Value Podcast - The Investor’s Podcast Network

The Investor's Podcast Network

Education, Investing, Business

4.6592 Ratings

🗓️ 11 August 2022

⏱️ 64 minutes

🧾️ Download transcript

Summary

IN THIS EPISODE, YOU’LL LEARN: 01:42 - What futures and options are, and why they exist. 08:19 - Tips for investors wanting to utilize options in their investment strategy. 14:50 - How LEAPS can supercharge your investment returns for long-term investors. 14:50 - Why collar spreads are potentially attractive to investors. 27:58 - What volatility really means with some historical references. 31:26 - Why passive investors are inherently short volatility. 35:22 - What the VIX and VOLQ are and why they’re important. And much, much more! *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members. Get in touch with Nasdaq options: indexoptions@nasdaq.com. Learn more about volatility, the VOLQ Index and VOLQ index options here. Explore the Nasdaq-100 Index and the Nasdaq index options offering here. Test out Options Architect, a backtesting tool which allows users to test various options strategies during pivotal market moments.  Related Episode: The Democratization of Finance w/ Seamus Scaring and Carlos Pelaez - MI121. NEW TO THE SHOW? Check out our Millennial Investing Starter Packs. Browse through all our episodes (complete with transcripts) here. Try Kyle’s favorite tool for picking stock winners and managing our portfolios: TIP Finance. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Fiscal.AI Connect with Kevin: Website | LinkedIn  Connect with Clay: Twitter  | Instagram HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!  Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

Click on a timestamp to play from that location

0:00.0

You're listening to TIP.

0:03.2

But long-term investors generally benefit from low volatility markets.

0:08.4

And so when volatility is high, they're seeing that drawdown.

0:13.1

And so by extension, they are implicitly short volatility.

0:19.9

On today's episode, I'm joined by Kevin Davitt.

0:23.4

Kevin is the head of NASDAX index options content and has spent years focused on options

0:28.6

education.

0:29.7

Prior to his exchange work, Kevin traded index, equity, and commodity futures and options

0:35.0

as a market maker at a variety of well-known firms. During this episode,

0:39.3

Kevin and I cover all things related to options, derivatives, and volatility in today's markets.

0:45.2

We also dive into tips for new investors wanting to utilize options in their investment strategies,

0:50.7

how leaps can supercharge your investment returns for long-term investors, why color

0:55.3

spreads are potentially attractive to investors, what the VIX and VALQ are and why they're

1:00.9

important, and so much more. With that, I really hope you enjoy today's conversation with Kevin

1:05.8

Davitt. You're listening to Millennial Investing by the Investors Podcast Network, where your hosts, Robert Leonard and Clay Fink, interview successful entrepreneurs, business leaders and investors to help educate and inspire the millennial generation.

1:27.2

Welcome to the Money Investing Podcast. I'm your host, Clay Fink. And today, I'm joined by Kevin

1:32.8

Davitt from NASDAQ. Kevin, welcome to the show. Thank you so much for having me on Clay. I'm

1:38.9

really pumped about this conversation. I'm looking forward to it. I am as well. To get us kicked off, let's talk a

1:45.9

little bit about your background. Tell us about what you do at NASDAQ and what you've been working on

1:52.2

in 2022. So I am part of NASDAQ's index options team. From a title standpoint, I'm head of content, which means I

2:02.4

create written and visual content with an emphasis on NASDAQ index products. I've worked

2:08.7

in and around the derivative products for my entire career. I started in the derivatives business

...

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