Author Background:
Erik Kobayashi-Solomon is a 20-year veteran of investment banking, hedge funds, and third-party analysis industry. He is also the co-founder of IOI Investor Services, LLC, a company that helps institutional and individual investors close the gap between their investment responsibility and their skill set. His book, The Intelligent Option Investor, was published by McGraw-Hill as a well-regarded contribution to the value investing community.
Erik’s Book Recommendation:
Audio Podcast:
Other ways to listen:
* On iTunes
* Right Click + Save As to download as an MP3
* Stream here directly
Five Good Questions:
- Many value investors may feel like options are dangerous, I know I did. Why was I wrong to be fearful and how can options be a useful tool for an investor?
- Assuming your analysis leads you to believe a company is undervalued, why might options be better expression than just buying and holding? What about the element of timing that options introduce?
- If you don’t believe in the Efficient Market Hypothesis, why should you be especially attracted to options investing?
- What is delta, and what can it tell us about Mr. Market?
- What are LEAPS and are they a good first step for a traditional value investor to dip their toe in the options water? How would address the concern that an investor might feel about getting comfortable with the relative trade-offs of premium price vs. tenor and strike price?
With gratitude,
