By Thomas Proia ‘22
On Thursday, March 4th, 2021, Mr. Shaun Pandit P'21, CEO and Director of EarlyBird Power, gave an insightful presentation to the St. Sebastian’s Finance Academy regarding his experience in financial markets, specifically energy and commodity options trading. Graduating from Boston College with a bachelor's in Economics, Mr. Pandit went on to earn his master's degree in Business Administration at Loyola College Chicago before starting his financial journey trading low-priced commodities in the Chicago stock market. He has fourteen years of experience in Electrical and Natural Gas Markets, working as the Lead Trader for PacifiCorp and as the Manager of Risk Management for TransCanada Power Marketing. Mr. Pandit then became the Vice President of Trading and Marketing for International Power-America before starting his own company, EarlyBird Power, which specializes in finding the lowest rates for a company to obtain power in the Greater Boston Area.
At the beginning of his presentation, Mr. Pandit introduced options trading by mentioning November's Stock Market fiasco caused by Reddit's "WallStreetBets" community and how it pertained to options trading. Mr. Pandit explained what exactly options trading is and how any commodity can be traded in the options stock market, citing oil and corn as two examples. Mr. Pandit then introduced the subject of options leverage, giving his advice on the subject, citing the quote, "With Great Power comes Great Responsibility." Mr. Pandit gave the students a basic understanding of the formation of options trading before elaborating on the topic, introducing them to the two different types of options trading, Calls, and Puts. He went on to illustrate what drives the prices of options stocks, Theta and Delta. From here, Mr. Pandit used an options stock that he had traded recently, Carnival Corporation, to give the audience members a real-life example of how options stocks work. He presented to the audience how to enter option stocks before showing the options market's fluctuation regarding Carnival Corporation and his profit at the end of the day. Afterward, Mr. Pandit gave the students advice regarding analyst recommendations, explaining not to fully trust them as major corporations already had that information before being released to the public.
From there, Mr. Pandit answered questions from students and facility alike regarding his experience in the Electrical and Natural Gas industry, giving his take on how the wide-spread power outages in Texas affected the options stock market and explaining how the Stock Market Crash of 2008 affected the market. Furthermore, Mr. Pandit answered questions on how certain life choices he made accumulated into the person he is today, the future of renewable sources of power, and how climate change affects the Energy market.
The students and faculty members of the Finance Academy were honored to have Mr. Pandit speak to us regarding his experience in options trading and the Electrical and Natural Gas markets. We thank him for taking the time out of his day to deliver an excellent presentation, and with Mr. Pandit's advice, we hope to use what we learned in our daily lives and our stock market endeavors.