Who Would Want to SELL Options, with Mark Adams of Warrington Asset Management
For every option buyer, there is a seller. The brave souls who are accused of picking up pennies in front of a freight train. But are they dumb? Crazy? Or just better at timing the market than the rest of us? Understanding option strategies which involve collecting premium seems easy, but there’s way more that goes into this recipe. As Jeff Malec asked our guest in this pod “Give it to me straight, partner” (41:25 mark) in the world of options selling. Mark Adams, Assistant Portfolio Manager and Chief Quantitative Officer at Warrington Asset Management is here to break down exactly what means to be an options specialist and the struggles and successes of operating options-based strategies. We’re talking with Mark about Dallas Cowboys, Volmageddon, stock buying for COVID, FANG+ as part of the index, short gamma trades, free put options, moving from the Federal Reserve to Warrington Asset Management, short vol developing a short or long bias, equity replacement strats, top TX BBQ spots, where the market makers are hedging, explaining complex strategies to RIAs, and the biggest mistakes people make when selling options.
From the episode: LJM – the autopsy blog.
00:00-01:42 = Intro
01:43-11:17 = Background Texas Bred to Internship turned Partnership
11:18-25:26 = Digging into the Fundamentals
25:27-47:34 = Volmageddon – Tactical vs Strategic
47:35-57:34 = Everything from Greek Indicators to Calls & Puts
57:35-01:00:01 = Terminal Breakevens
01:00:02-01:03:36 = Testing Strategies
01:03:37-01:11:04 = Favorites
Follow along with Warrington & all of their funds at warringtonasset.com.
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