Sun, Aug 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Maple Leaf on how to profit from volatility

Friday, September 07, 2012

Benedicte Gravrand, Opalesque Geneva:

Michael Wexler, veteran volatility trader and co-founder of Maple Leaf Capital, explained in a recent Opalesque TV interview how investors can profit from a high volatility environment. Maple Leaf Capital is an investment management company founded in 2002, with principal offices in London and Hong Kong, and which manages client assets in the areas of volatility trading, illiquid loans, fixed income momentum arbitrage, macro risk, and crash overlay strategies.

According to Wexler, it is possible to profit from volatility because the dislocation in the pricing of options between fair value and actual trading is greater at higher volatility levels.

"The first thing to note about the volatility space is that the bulk of participants in it are not volatility traders," he explains. 99% of investors buying and selling calls and puts, he continues, do so with a directional view in mind. They are not sensitive to the volatility (vol) component. Paying 5% or 6% for a call option will not make much of a difference for them. But for the volatility traders – such as those at Maple Leaf – this difference is huge, and it is one where they can extract value if the option is over or under-priced. Those 99% of investors are what he calls "non-economic traders".

"If you buy a call on......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner