Episode 78: New Option for Trading Options: An interview An Interview with Watershed Technologies’ Gavin Rowe

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Gavin Rowe, CEO of Watershed Technologies, to explore the fast-evolving world of options trading. With 40 million options contracts traded daily—double the volume from just two years ago—the options market has become a critical tool for risk management. Gavin shares his deep expertise, breaking down how options function as term risk instruments and how they help gauge the market's economic risk appetite. He also explains the nuances of order volume, bid-ask spreads, and the critical role of market makers in maintaining liquidity.

The conversation dives into the impact of electronic trading, the shift from open outcry markets to high-speed digital execution, and the importance of reputation in the trading industry. Gavin also introduces Watershed Technologies and its mission to improve options pricing through a technology-driven auction process. Whether you're a seasoned options trader or just getting started, this episode provides a fascinating look into how the options market works—and how technology is shaping its future.