In this episode of The Trade Busters podcast, host David Sun welcomes back Kris Abdelmessih to delve deeper into the nuances of volatility trading and investing. Kris shares insights into Moontower AI's progress, distinguishing between trading anomalies and investing in risk premiums, and dissecting the volatility risk premium. The conversation explores risk management strategies, contrasting reactive approaches with proactive risk constraint, and examines the importance of managing Greeks, stock inventory, and financing risks. Kris emphasizes the significance of understanding unit economics and moving beyond P&L to assess the true performance drivers in options trading, advocating for a tribal, experience-based approach to sizing positions over rigid formulas like the Kelly Criterion.
