Is option hedging worth it — or just an expensive insurance policy?

We sat down with Joe DeSipio, Chief Market Strategist at Arin Risk Advisors, to explore how professional investors think about using options for hedging, portfolio construction, and opportunistic trading.

In this conversation, we cover:

• Why put options are often overpriced, and what to do about it
• The rise of retail interest in options and its effects in market-making
• How to navigate "explanation risk" with clients
• Why 0DTE options aren’t the threat some think they are
• Using options as a complement for traditional portfolios
• Dynamic vs. static hedging: when to use each approach
• The efficiency (and inefficiencies) of the options market
• Why RoaringKitty changed the world of options for the best

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Is Options Hedging Worth It? with Arin Risk Advisors’s Joe DeSipio

Guest:

Andrew Lo - the Charles E. and Susan T. Harris Professor at the MIT Sloan School of Management and director of the MIT Laboratory for Financial Engineering. He’s going to talk to us about his book Adaptive Markets: Financial Evolution at the Speed of Thought, which has been shortlisted for the 2017 Financial Times and McKinsey Business Book of the Year Award

Behind the Markets Podcast: Andrew Lo

The Alpha Architect mission is to empower investors through education.

Is Options Hedging Worth It? with Arin Risk Advisors’s Joe DeSipio

Alpha Architect

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