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


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Jan 13 2021 67 mins   226
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.