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Capturing Option-Like Returns with Event Driven Investing

Capturing Option-Like Returns with Event Driven Investing

Aired On

Feb / 23 / 2022
12:00 pm - EST
Anand Batepati
GFM Focus Investing

Why do people buy options? The logic goes that for a small outlay you have the potential to receive larger returns – the leverage bit. And if you’re wrong, you might only lose a small amount of money compared to losing larger amounts by buying the underlying asset – the insurance bit.

To make money as an option buyer you have to get two things right – the direction and the timing. Getting one right is hard enough, but getting both right is several times more difficult. Hence, most option buyers end up holding decaying positions, where the majority of the open interest expires worthless.

Event Driven Investing is viable in many ways. This style of investing has generated many famous investors like Joel Greenblatt, Dan Loeb and others with stellar investing track records over long periods.

Event driven investments are opportunities that have everything to do with certain company-specific catalysts playing out to potentially generate outsized investment returns, and have little to do with markets being high or low, or markets trending up or down.

In this educational webinar, we will showcase what has made Event Driven Investing a powerful investing approach for us at GFM Focus.

We will use case studies from our experience to showcase opportunities where the risk of permanent loss of capital was low, and the upside potential was disproportionately higher from the optionality embedded in the investment situation. We summarize and highlight our investment process for such opportunities. 

Join us for this webinar and learn about a powerful investing approach.




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Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from GFM Focus Investing and is being posted with its permission. The views expressed in this material are solely those of the author and/or GFM Focus Investing and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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