How AlphaShark's Andrew Keene Is Playing Yandex

The video discusses an AQR paper on volatility trading, highlighting the challenges of betting on long and short volatility. It explores market trends since 2009, noting the difficulty in predicting volatility spikes. The speaker shares insights on trading strategies, focusing on options and time decay. A specific trade involving Yandex is analyzed, emphasizing the use of a bull call spread to manage risk and volatility.

What is a key takeaway from the AQR paper regarding volatility trades?

• Long volatility trades are always profitable.

• Short volatility trades are risk-free.

• Both long and short volatility trades have challenges.

• Volatility trades are easy to predict.

Why is it difficult to hold the VIX index as a long-term investment?

• It expires to cash and cannot be held like stocks.

• It has no expiration date.

• It is not affected by market volatility.

• It is a stock that can be held indefinitely.

What is the speaker's current approach to trading options?

• Buying long-term options without spreads.

• Selling short-term options aggressively.

• Avoiding options trading altogether.

• Using spreads to manage volatility.

What is the speaker's trade strategy involving Yandex?

• Buying Yandex stocks directly.

• Using a bull call spread on Yandex options.

• Shorting Yandex stocks.

• Investing in Yandex bonds.

What is the potential outcome if Yandex goes above 38 at expiration in the speaker's trade?

• The trade will triple in value.

• The trade will result in a loss.

• The trade will break even.

• The trade will double in value.