Ben Eifert
speaker
517 appearances
1 recordings
1 series
first heard Feb 2025
last heard Feb 2025
Ben Eifert’s voice in public audio — every appearance, attributed to the second.
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Appearances
And then once every, you know, three years or five years, you'll kind of get wiped out and end up down.
Exactly.
And actually that's and and actually there is something to that.
Usually ma usually it's like a month or two after the wipeout, because you don't know if there's gonna be another big leg down or something, but there does tend to be some excess risk premium in options markets a little while after a big market crash that blows out a lot of these guys and kinda causes people to panic.
That's totally true.
And then that tends to go away after another, you know, whatever it is, year or two years or something like that.
Yep.
So this is a a big new manifestation of a relatively old popular idea.
So buffer ETFs are usually pitched as sort of defined outcomes in some sense over some time period where they say, Well, what you're trying what we're trying to do is give you equity exposure, but you're pr you have protection, you have a buffer down to say ten or fifteen percent where you're not gonna lose money as the market goes down.
And then beyond that point you're exposed.
And in order to do that, you're gonna sell an upside call, you're gonna give up some of your upside.
And so what this is, it's basically just a put spread caller, which is a very standard kind of option structure where you sell a call to buy a put spread.
That is for many, many years and decades, by far the most popular thing that a Wall Street derivative salesperson will run around trying to pitch to their clients.
It's a very easy thing to conceptualize.
I'm giving up
I'm
Some upside, I'm getting some protection.
They can be structured so that there's sort of zero premium outlay where you you sell a call and use that that same amount of money to buy a put.
So if you're an aggressive salesman, you call that like a free hedge or a zero cost hedge.
Of course, you're giving up upside.
Showing 61–80 of 517 · page 4 of 26
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