Macro Tourist Markets

One Trader Thinks It’s Time To Buy Equity Vol. – But Not For The Reason You Think

"...on a risk-adjusted basis, they are giving these call options away."

"...on a risk-adjusted basis, they are giving these call options away."
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2 comments on “One Trader Thinks It’s Time To Buy Equity Vol. – But Not For The Reason You Think

  1. Anonymous

    excellent article

  2. I agree. Volatility is about the rate of change of prices. If prices accelerate going higher volatility will increase. Whenever a bubble forms, a price chart becomes an exponential function till the ultimate collapse, it’s the accelerating/exponential function, that becomes almost vertical.
    Studies on the correlation between volatility and direction of the index show there is an inverted correlation 80% of time, but 20% of time they go in the same direction, usually volatility up and prices up. We can even think a rarer case, where prices drift slowly lower and therefore volatility decreases too.

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