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Ep. 579: Mihir A. Desai Interview with Michael Covel on TRend Following Radio

Michael Covel's Trend Following

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The Importance of Options in the Future

I love where you go with Fred Smith of FedEx. Because it illustrates so many issues inside the world of finance and how he handled a very precarious early moment in the history of FedEx. I tell this in the context of, well, one of the great things about options is that it can actually give rise to more risk-taking because that's what options give you a logic to do. It's like this asymmetric payoff. Heads I win, tails I don't lose. That's fundamentally what options are.

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