Don Dale

About Don Dale

Don Dale is the Chief Risk Strategist for Equity Risk Control Group, LLC, an outsourced dynamic hedging sub-advisor specializing in equity derivatives for institutional asset managers. He is a 30-year veteran of the proprietary and institutional derivatives trading arenas; previously holding senior positions at Susquehanna International Group (SIG), Nomura International, BNP Paribas, and Dresdner Kleinwort Wasserstein. Contact:

This Fed Put is Out of the Money

Don Dale, Chief Risk Strategist for Equity Risk Control Group, is a guest contributor to the Alphacution Feed.   I am not a funny guy. (Ask my wife...) And yet, occasionally - when I say the quiet part out loud - I manage to get a laugh. My latest bit is an idea about how to "fight the Fed." So, while you may enjoy a chuckle at the thought, here's why I think things might be different this time: The “Fed Put” is a common reference in capital market circles – particularly since the GFC – given their increasingly likely position to backstop some asset classes. Of late, the Fed’s actions were the driving force behind the stabilization of the bond market since the March gyrations; by extension, the equity markets. However, the primary driver for equity market performance within US indices has been the mega cap FAANGM names, given the thematic benefit of social distancing on factors like home delivery, video bingeing and all manner of online interactions. This [...]

By | 2020-05-19T13:55:30-04:00 May 16th, 2020|Alphacution Feed|