Wealth insurance is too cheap relative to risk
The speaker argued that options-based risk reduction is incredibly affordable and too low relative to the macro uncertainties, presenting a buying opportunity for volatility.
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The Callback
Integrated risk: correlation, single-stock vol, and cheap insurance
54 weeks between these two statements.
The speaker advocated for buying 2-3 month 95/80 put spreads on the S&P 500 as a reasonably priced, liquid form of portfolio insurance given the current risk backdrop.
The speaker argued that options-based risk reduction is incredibly affordable and too low relative to the macro uncertainties, presenting a buying opportunity for volatility.