Episode Details

Most investors think they understand what they own — Devin Anderson and Zed Francis of Convexitas are here to prove they don't, and to show what the next generation of derivative investing actually looks like.

Pierre Daillie and Mike Philbrick welcome Devin Anderson and Zed Francis, Co-Founders of Convexitas, for a masterclass in derivative investing that challenges everything advisors and investors think they know about covered calls, buffered ETFs, and options-based income strategies. Drawing on deep institutional backgrounds — Devin from two decades at Deutsche Bank's equity derivatives structuring desk, and Zed from UBS credit trading, distressed hedge funds, and Legal & General — the two founders lay bare the hidden complexity lurking inside "simple" yield products that dominate today's wealth management landscape.

The conversation pulls no punches: the hockey-stick diagrams used to explain covered call ETFs at point-of-sale actively mask real-time risk exposures that can shift dramatically intraday. A product sold as "half the risk of equities" can quietly become nearly full equity exposure within hours of a 1% market move — and most advisors and clients have no idea. Devin and Zed argue this isn't a reason to abandon these products, but a powerful case for active, continuous derivative management that delivers what the product actually promised.

The founders introduce Convexitas's philosophy: that the options market is structurally mispriced, and that most yield-seeking investors are sitting on the wrong side of that mispricing. They walk through the SMA-based approach — designed to generate accessible liquidity precisely when markets crash, enabling advisors to rebalance into distressed assets rather than being frozen by tax friction, behavioral paralysis, or trapped capital in fund wrappers. From the mechanics of short volatility to the case for unfunded overlays, return stacking, and Warren Buffett's alpha decoded through Fama-French factors, this episode is essential listening for any advisor navigating the derivative income revolution.

Chapters

00:00 — Introduction: The income wave reshaping wealth management

04:52 — Meet Devin Anderson & Zed Francis: Career arcs and the founding of Convexitas

12:16 — What investors actually own: The hidden complexity inside covered call ETFs

16:18 — Real-time risk exposure: How moneyness shifts dramatically intraday

19:17 — The silent danger: Stacking short volatility across multiple products

28:00 — Structural mispricing in the options market: Why sellers face a systemic disadvantage

38:00 — Investment products vs. trading instruments: A critical distinction for advisors

43:08 — The income stack: Gaining Gold and Bitcoin exposure with capital efficiency

50:43 — First-gen vs. next-gen: From buffered ETFs to actively managed derivative overlays

57:08 — Tax efficiency, rebalancing, and the SMA advantage

01:18:06 — Why accessible capital is the biggest benefit of risk mitigation — not mark-to-market

01:23:53 — Buying when there's blood in the streets: Liquidity, structure, and Warren Buffett's alpha

01:26:37 — Final outlook: Inflation, financialization, and the binary tail risks ahead

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