Vol Curves and Vanna Charm with Cem Karsan
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- Today’s pod is all about word play playing into alternative investment. How does Jam Croissant relate to Cem Karsan? What about Vanna Charm and options definitions? Or the forever popular “there’s no such thing as a free lunch” evolving to “nothing is ever risk free”? To get together the definitions, explanations, and educated facts on all these nuances, we have FinTwit VIP & Founder and Senior Managing Partner of Aegea Capital Management, Cem Karsan. On top of alternative investment word witticism we’re also talking with Cem about how to actually pronounce Cem Karsan starting out as a market maker, Hagia Sophia, vanna informing trend following, buying options, twitter debates, Cem’s favorite jam & croissant, active to passive moves, the election pushing October, November, and December higher, how nothing is ever risk free, winner takes all mentality for market makers, market down/vol down market up/vol up, volatility retail call buying growth versus value, and all of the Greek/options definitions.
Chapters:
00:00-01:50 = Intro
01:51-14:04 = A Globetrotting Background and the road to Aegea
14:05-30:06 = Market Makers Business Models
30:07-41:22 = Delta, Gamma, Vega, Vanna, Charm
41:23-52:55 = Playing the Players, Loving the Game
52:56-1:00:22 = Talking Aegea Capital & Getting an Edge
1:00:23-1:16:25 = Momentum vs Value, ProfPlum vs Jam
1:16:26-1:27:04 = Vol Surface & the Election
1:27:05-1:32:23 = Favorites
Follow along with Cem on Twitter (@jam_croissant) and LinkedIn and check out Aegea Capital Management’s website.
And last but not least, don't forget to subscribe to The Derivative, and follow us on Twitter, 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
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Visiting this 2 years later because: 1. Cem became a Rockstar and 2. Trying to learn this options Greeks-based market structure as much as possible and this is the best place to be
I listen to this 3 times in 3 different days and my head still spinning
Trust me - you're not alone there!!
@@TheDerivativebyRCMAlternatives this channels is a gem. Thank you 🙏
Agreed. This channel is like a gem croissant.
@@Main.Account ba dum tss 🥁
thank you for cutting the video time stamps into segments for us viewers
Great insights - rarely do you get this kind of detailed discussion and ideas from a really smart options pro.
Agreed - Cem is a gem in the options space. Thanks for listening!
Wow, what a gem. Got more than I expected, and I had a high expectations, amazing. This guy is not just owning the options portion, he can discuss macro as well, up there with the few only that understand macro. Good questions as well, thank you for doing this interview.
Thanks! Cem truly is a gem! We’re thankful to have had him on the pod with us!
I've been wanting him to explain more and this was the perfect. He was unbelievably correct on his call to value. Thank you so much for your time putting this together and Cem.
Did you understand the bit where tried to explain his reason for being long value? Like what I got was that retail bid up option prices so the dealers took the short side at which point to hedge their short vol position they went long vol in the indices and value. But apparently this created an oversupply of IV in the indices and value and crushed iv? Like wouldn’t the demand from the dealers trying to hedge bring about a shortage of IV?
Thank you doing what you doing @rcm, really helps a lot of us out
As of early February 2020 and
Thanks for noticing and being a loyal follower!!! Slowly but surely we’re getting there.
One of the best episodes thus far
YES! Glad you think so - we're right there with you.
wow!!! Smart people
Is there a “gamma” of theta? Anyone know how that could be modeled?
Great guest. Respectfully, would have been far better if the host had let the guest speak at length uninterrupted. He has some very nuanced insights to share.
crazy this was made a year ago and the same cycle is happening today. You wouldnt even know this was from last year
Can you elaborate on vix strike vol and how a retail noob like myself can get my head around it?
Cem (@jam_croissant
) & Benn Eifert (@bennpeifert) are probably the best experts to get this info from! We recommend following them on Twitter (handles above), they're super active and usually answer any & all questions. Cem also did another really great pod with Meb Faber that you can listen to here: mebfaber.com/2020/09/30/episode-252-cem-karsan-aegea-capital-30-day-vol-tends-to-be-overbid-and-you-have-extended-supply-in-the-back-of-the-curve-historically/. May be of some help to you as well.
@@TheDerivativebyRCMAlternatives thanks for taking the time. Really appreciate it. Also I'm addicted to your channel can't believe a gem like this isn't popping off. Unreal. Keep up the great work.
@@IsaacWendt 🙏🏼 huge thanks! Super nice words and we’re so happy you enjoy. Hoping we can continue to provide the best content for you moving forward!
@@IsaacWendt we also just put together this options definitions blog post that could add some color for you: www.rcmalternatives.com/2020/11/10-options-definitions-you-need-to-know/?Social%20Media&hss_channel=tw-172836249
He's actually saying "fixed strike vol". I wouldn't worry about that part as a retail noob. The "Market Maker Business Models" and "Momentum vs value" chapters would be the most helpful for someone just starting (although Cem is really more about advanced topics overall).
Sir,can i get transcript
Hi Ajit! I can get you the transcript. Please submit your email address here: info.rcmalternatives.com/get-our-blog-alternatives (This will also ensure that you get all of the transcripts moving forward) and then I'll email you the transcript. Thanks! Allie
Isn't Option Charm named like the charm quark?
Good question - just reached out to the professional on Twitter to ask ;)
It's a second-order greek named "charm"
@@jeffdafoe yes, many thanks. I was however reacting to what they were saying in the video, debating about the origin of the name "charm".
This could be 100x better, if you wouldn't literally constantly interrupt your guest, especially in such key speeches where he feels comfortable to fully unleash his chain of thoughts. Just let the man speak freely, that shouldn't be difficult
Sorry, but I'm not sure whom your target audience is. You are asking him about simple greek definitions then talk about ES/SPX vol surface term structure and order flow. In my humble opinion, one should either target simple and basic concepts or talk about vol surface dynamics/strategies that are aimed to take advantage of them. Anyway, I appreciate the effort.
Just skip past the sections you aren't interested in?
@@jeffdafoe should I do that after I watched the entire video?
@@SuperDangerousMouse I don't know how you are watching, but for me the video is broken out into chapters on the right hand side. The name gives insight into what each section is about.
@@SuperDangerousMouse It's dividend into chapters
Volga is Vomma ...thats what everyone calls it no one says volga?!?! just like no one is calling Gamma KAPPA!?!?
No one calls Gamma "Kappa" because Kappa is Vega, ace.
Beat me to the comment punch, ha
It wasn’t just the host interrupting the guest, the guest interrupted the host too. These two just don’t communicate well period. The info is so good but it’s frustrating to listen to.