Patrick Hennessy, CMT Head Trader I learned a long time ago as a young broker on Wall Street that when looking at a potential trade if the numbers look good, buy the position. Conversely, if the numbers look bad, take the other side of the trade. The popularity of exchange-traded options has exploded in recent years in the investment community. Billions of dollars have been allocated to options-based strategies…
By Joanna Ossinger – Bloomberg Markets – August 14, 2019, 7:43 AM MDT Updated on August 14, 2019, 4:45 PM MDT – featuring Patrick Hennessy, Head Trader, IPS Strategic Capital – The bad news for investors who waited this long to buy equity hedges is they’ve become eye-wateringly expensive. The good news is Wall Street thinks there are a few cheap strategies left. A gauge tracking the price of bearish S&P…
By Cecile Gutscher and Yakob Peterseil By Cecile Gutscher and Yakob Peterseil – Bloomberg Markets – April 10, 2019, 10:11 AM MDT – featuring Dominick Paoloni, IPS Strategic Capital founder, PM IPSAX – A small band of humans is taking up arms against the rise of the machines. Fund managers who ride big sell-offs in stocks are relishing fresh Wall Street warnings that robots and the like are leaving the bull market more vulnerable…
by Nikolaj Gammeltoft and Cecile Vannucci January 10, 2018, 4:00 AM MST Click Here to read on Bloomberg’s website. It made for quite a chart. On the morning of Dec. 20, just as billions of dollars of futures tied to the Cboe Volatility Index were set to expire, the index plunged. The result was a settlement price, a weekly value critical to holders of some the most heavily traded derivatives…
by Cecile VannucciFebruary 8, 2017, 3:17 AM MST February 8, 2017, 6:39 AM MSTClick Here to read on Bloomberg’s website. Here’s another sign that beneath the surface of placid stock markets, investors aren’t exactly sound asleep. It’s the persistently high premium traders are paying for equity options, visible in the difference between implied and realized volatility in the S&P 500 Index. The gap, definable as the intangible cost of stock…
by Dominick Paoloni, CIMA® IPS Strategic Capital published a white paper on a systematic approach to low cost tail risk hedging through the use of VIX options. This white paper was featured in the Journal of Investment Consulting magazine, Vol. 17, No. 1, 2016. Click here to read the paper.
Asset allocators and portfolio managers (PM) have had many sleepless nights in 2015 with the global markets being very volatile. The S&P 500 has been essentially flat for 2015, the bond markets have been under press anticipating a rising interest rate environment, commodities have been under strong downward pressure and Europe is teetering on recession. The question is, where does a PM diversify? Read More…
By: Yakob Peterseil from Structured Products Magazine Like someone who believes that what he is saying should be plainly obvious to all, Dominick Paoloni rattles off the shortcomings he sees with the structured products sold by Wall Street. These firms charge excessive fees, he says, have long tenors and point-to-point payouts, and expose investors to unacceptable levels of counterparty risk. In fact, Paoloni dislikes these products so much that six…
May 22, 2014 By: Yakob Peterseil Structured Products Magazine “It was too good to be true. I couldn’t sell them quick enough,” Dominick Paoloni of IPS Strategic Capital says as he remembers some of the first indexed annuities, which were rolled out by the Sun Life insurance company in 1996. The Denver-based financial adviser is now fond of saying most annuities are not worth the paper they are…
By: Libby Dubick Dubick & Associates for OIC Advisor Publications “We just got audited,” said Dominick Paoloni, President of IPS Strategic Capital, in Denver, Colorado. “After determining that the vast majority of my clients were retirees, and that they were all in options-driven strategies, the auditor asked me if I thought it was prudent. “Options were originally designed as a hedge. It is true that people use them to leverage…
By: Dominick Paoloni, CIMA® The popularity of structured investing is slowly moving its way through the financial community mainstream. Structured investing is a sophisticated technique that allows investors to reduce or eliminate the downside market risk, or leverage the returns, of the underlying asset class. By blending structured investments into a portfolio mix that may include traditional ETFs, or mutual funds, advisors can provide a suitable risk versus reward…
By: Dominick Paoloni, CIMA® Managing money is extremely difficult and ever changing. According to AARP, the two greatest concerns of their members are outliving their income and not having enough savings to retire. During the last twelve years the capital markets have exacerbated this problem with volatile stock markets and crashing real estate values. Good money managers lost less, which gives little solace to the investors whose main concern is…
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