Ep 1. Bursting the AMC Bubble

Trader Chats

In this episode Imran Lakha, founder of Options Insight, talks to Ben Weinbroer, a long/short equity hedge fund manager at Steelyard Capital.

They discuss how Ben has been using the extreme rallies in meme stocks such as AMC to build concentrated short positions in stocks where he believes there a massive mis-pricing and highly inflated valuations. Ben believes that having shorts in the portfolio in names such as AMC, Robinhood or Tesla can help insulate a portfolio from drawdowns in the market as these highly valued stocks should be punished more than the broader indices. Obviously, this position does not come without it’s risks, but by monitoring the borrow rates and the implied volatility in options markets, Ben has so far managed to navigate this trade successfully and timed his short entries well. Imran, a 20-year veteran options trader, then goes on to explain an options strategy which could be used to express a similar bearish view on the stock, but also takes advantage of the elevated levels of implied volatility. To learn more about OPTIONS INSIGHT please visit www.options-insight.com or email [e-mail] NONE OF THE MATERIAL IN THIS PODCAST SHOULD BE CONSIDERED AS INVESTMENT ADVISE, IT IS FOR INFORMATIONAL AND ENTERTAINMENT PURPOSES ONLY. ALWAYS CONSULT A REGISTERED INVESTMENT PROFESSIONAL BEFORE MAKING INVESTMENT DECISIONS. THE VIEWS AND OPINIONS EXPRESSED ON TRADER CHATS ARE THOSE OF THE PARTICIPANTS AND DO NOT NECESSARILY REFLECT THOSE OF THE HOST. OPTIONS INSIGHT OR IMRAN LAKHA SHALL NOT BE LIABLE FROM LOSSES RESULTING FROM INVESTMENT DECISIONS BASED ON INFORMATION OR VIEWPOINTS PRESENTED ON TRADER CHATS.