Latest podcast features Alec Litowitz, the Founder of Magnetar Capital and now the Founder and CIO of QStar Capital. Alec is a tremendous investor and thinker on markets and the author of "The Adaptability Quotient", a book that details his framework for decision-making under uncertainty. Our conversation covers a lot of ground! Apple Podcast: Spotify: YouTube Video:

you are (lucky enough to be) a top 10 holder of $SNDK ... you can implement a zero cost collar out to Dec'28 and hedge all but 10% of the downside but retain up to 100% of the upside from here. that is, you can buy a put that is 10% out of the money and finance it by selling a call that is double the current stock price. do you do it? this is a theoretical pricing exercise, but it's not going to be that far off. the trade capitalizes on 3 factors, all of which go your way. 1) interest rates and (lack of) dividends 2) the incredibly high level of implied volatility on these options 3) the very small differential between the vol on the put you'd buy versus call you'd sell check out the video I did on this "Cuban's Collar is Jensen's Alpha" to learn more about the economics of zero cost collars