Today, I’m headed to New Orleans for our tri-annual Portfolio Accelerator event.
There’s always been something about this city that resonates with me—not just the food, the music, or the unmistakable soul of the French Quarter—but its relationship with risk.
New Orleans understands risk. And more importantly, it understands how to manage it.
From levees and dikes to advanced pumping and drainage systems, the city doesn’t ignore the dangers it faces. It builds around them. It plans for them. It respects them. Just like we do as traders.
That’s part of why this city is such an inspiring backdrop for a room full of portfolio-focused minds. Like New Orleans, we try to hedge our exposure. We use long options, smart position sizing, and strategic overlays to reduce our downside risk. And like the levees, those hedges give us peace of mind—until the water starts to rise.
Because here’s the truth: sometimes, Mother Nature throws a punch you just can’t fully dodge. In markets, that’s when volatility explodes and our carefully calibrated short-vol trades face the full wrath of a panicked tape. Sure, we might technically know our max loss. But let’s be honest—how many of us are actually comfortable with that worst-case scenario when it hits?
This city is a living metaphor for risk management. It doesn’t pretend bad things can’t happen. It builds for them. It learns from the past and adapts. And it keeps going.
As I walk the streets of the French Quarter this week, I’ll be looking closely—not just at the architecture, but at the layers of protection embedded into every brick and shutter. There are lessons in the cracks, in the rebuilt corners, and in the quiet resilience of a place that refuses to be washed away.
Maybe, if I listen closely, the walls will whisper a little wisdom about how to trade—and live—with a healthy respect for risk.
Sean McLaughlin | Chief Options Strategist, All Star Charts
