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…
IPS In The News
The Liquidity ‘Illusion’ Has These Funds Making Plans for a Stock Doomsday
The Liquidity ‘Illusion’ Has These Funds Making Plans for a Stock Doomsday 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…
The Portfolio Manager’s Dilemma: Timing the Market
The Portfolio Manager’s Dilemma: Timing the Market Dominick Paoloni, CIMA®CIO & FounderPortfolio Manager, IPSAXJanuary 24, 2019 At 2:32pm on May 6, 2010, the S&P 500 careened 8% in just 36 minutes before rebounding with just as dramatic of a move. The reason for this extreme volatility, according to market pundits, is that algorithmic trading firms step away from the market when they sense instability. Paul Britton of Capstone points…
Is the VIX Being Gamed? A Sudden Swoon Has Traders Talking Again
by Nikolaj Gammeltoft and Cecile VannucciJanuary 10, 2018, 4:00 AM MSTClick 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 in the…
Low VIX Masks Insurance Markup Options Traders Are Paying
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…
A Study in Portfolio Diversification Using VIX Options
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.
Financial Advisors Set To Increase Use Of Options In 2015
By: Daniel O’Leary of EQDerivatives U.S.-based registered financial advisors are becoming more sophisticated with their use of options as hedging strategies, presenting an avenue of potential growth for brokers, financial boutiques and custodians. Read the full article here.
Low Cost Hedging Strategies in a Volatile Market
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…
IPS Found the Good in Derivatives
By: Lori Pizzani from Structured Retail Products.com Dominick Paoloni started his career in the early 1980s as many others have in the financial services industry – working at, then running, a broker-dealer firm. But he says that he subsequently realized the fallacy of the broker-dealer model, and after starting to find good investment managers, evaluating alpha and building portfolios for clients, he started his own Registered Investment Advisory (RIA) firm in…
West Coast Boutique Crafts Custom Structured Products
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…
New Annuities are Structured Products in All but Name
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…
Advisor’s Epiphany Leads to Options
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…
