The Mind Money Spectrum Podcast

#59. Stock options are risky business. Here's when they can actually make sense.

January 26, 2021 Aaron Agte and Trishul Patel Season 2 Episode 7
The Mind Money Spectrum Podcast
#59. Stock options are risky business. Here's when they can actually make sense.
Chapters
The Mind Money Spectrum Podcast
#59. Stock options are risky business. Here's when they can actually make sense.
Jan 26, 2021 Season 2 Episode 7
Aaron Agte and Trishul Patel

In this episode, Trishul and Aaron go deep into options. Not employee stock options, but calls and puts. The ones you can buy or sell on your own. Well, at least Trishul goes deep. He recalls previous strategies he executed in a past life as an options dealer and trader. Casinos and insurance companies get paid for taking on risk. But they also diversify risk to stay in business. Buying options may have a negative expected value, but sometimes the protection is worth the price. The key is figuring out when.

Episode References

MMS #21. Why the VIX is useless.
Black-Scholes Calculator
Black-Scholes
Black-Scholes Model
http://fxoptionpricing.com/
Geometric Brownian Motion
Wiener Process
Options Strategies
Getting to Know the Greeks
Vanna-Volga Pricing
Stochastic Volatility
Asian Option

Podcast Description


Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Trishul and Aaron go deep into options. Not employee stock options, but calls and puts. The ones you can buy or sell on your own. Well, at least Trishul goes deep. He recalls previous strategies he executed in a past life as an options dealer and trader. Casinos and insurance companies get paid for taking on risk. But they also diversify risk to stay in business. Buying options may have a negative expected value, but sometimes the protection is worth the price. The key is figuring out when.

Episode References

MMS #21. Why the VIX is useless.
Black-Scholes Calculator
Black-Scholes
Black-Scholes Model
http://fxoptionpricing.com/
Geometric Brownian Motion
Wiener Process
Options Strategies
Getting to Know the Greeks
Vanna-Volga Pricing
Stochastic Volatility
Asian Option

Podcast Description


Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.