VOL01: The New Nature of Stock Market Movements ft. Hari Krishnan

Published: Oct. 26, 2021, 11 p.m.

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Today Jason Buck is joined by Hari Krishnan in the first of our series on Volatility. Topics discussed include: the benefits of adding volatility strategies to your portfolio, why it can pay to avoid hedging when the crowd is already doing so, explaining the \'Put slingshot\', how markets are different today from decades ago, protection against tail-risk, the psychology behind large markets sell-offs, and some thoughts on the effects of leverage on the markets.

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In this episode, we discuss:

  • The benefits of tail-risk hedges / adding volatility hedges to your portfolio
  • The importance of avoiding group think (in hedging)
  • Some thoughts on what is known as the \\u2018Put slingshot\\u2019
  • The new nature of stock market movements
  • The repricing of risk during fast downturns
  • Tail-risk protection versus Trend Following
  • How tail-risk protection can complement an existing allocation to Trend Following
  • Some of the psychology and mechanisms behind large and sharp market moves
  • How positioning and leverage end up creating challenging markets to trade in

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Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Episode TimeStamps:

00:00 - Intro

02:59 - Why should somebody include volatility or tail risk into their portfolio?

04:35 - Do you think rolling option puts is a good hedging strategy?

07:47 - The tradeoffs between near-term and long-term option pricing

09:03 - Can you explain the differences between...'