It's not every day you get to sit down with a Volatility veteran with over 30 years of experience…..Well, maybe it’s a bit more common here on the Derivative than elsewhere, but we’ve got a special treat with Ari Bergmann(@AriBergmann) joining Jeff on this week's Derivative episode. Listen in as they dive into where to find convexity, why that’s not the same thing as buying lottery tickets, how there’s a difference between a low price and a value, and the processes needed to maintain portfolios of convex instruments. Ari is the Founder and Managing Principal/CIO at Penso Advisors, where he leads the firm's investment committee and manages various Penso funds and clients' mandates.

Ari and Jeff are sorting through all of the Volatility mumbo jumbo and taking a closer look at the practical limits of cheap convexity, where imbalances come from in residuals and structured notes; how the ignorance of the possibility of a second leg down formed and still exists, trading complex options vs. vanilla options, the importance of monetization, and so much more! Plus, Ari is giving his hottest take on gold and why it's crucial to keep your personal life private — SEND IT!

Chapters:

00:00-01:53 = Intro

01:54-14:38 = Confusion de Confusiones & the start of Penso

14:39-24:48 = Approaching the limits of cheap convexity, residuals & structured notes

24:49-34:45 = Ignorance and Opportunities for a Second leg down

34:46-42:51 = Dual digital, complex options vs vanilla options & the importance of Monetization

42:52-52:19 = Always rebalance your portfolio

52:20-56:32 = Hottest take: Gold is good & Keep your personal life private

From the Episode:

Check out and read Confusion de Confusiones

Follow along with Ari on Twitter @AriBergmann and for more information on Ari and his team at Penso Advisors visit their website at www.penso.com 

Don't forget to subscribe to The Derivative, follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer