Cem Karsan stops by The Business Brew to discuss the lens he views markets through.

Cem's viewpoint is unique compared to many guests on this program because he looks at how options dealers are positioned and considers what flows may result from that positioning.

Many guests on this show view equity valuation as the present value of the discounted cash flows available to equity.

While Cem would likely agree with that, he argues in this episode that an equity's valuation is really an output derived from the options market (which expresses probabilistic views of discounted cash flows).

We hope this episode gives you something to think about! Cem Karsan formed Kai Volatility Advisors after two decades of experience building industry-leading derivatives businesses.

From 1999 to 2002, he worked as a volatility trader as part of RBC Dominion Securities/ Derivatives Arbitrage Group.

From 2002 to 2005, he worked under renowned Wall St. investor John Mulheren at Bear Wagner Specialists, where Cem helped expand the firm's fledgling derivatives arbitrage business into a competitive force within the industry.

In 2005, Cem took a select group from the firm's proprietary trading arm and founded Precision Capital Management, specializing in equity index volatility arbitrage.

The firm became a significant SPX market maker reaching, at its peak, a high of ~13% of daily trading volume.*

In 2010, Cem divested his stake in Precision and fouded AEGEA Capital, the precursor to Kai Volatility Advisors. *Past performance may not be indicative of future results. Follow Cem on Twitter https://twitter.com/jam_croissant Learn more about Kai: https://www.kaivolatility.com/contact