Macro Tourist VIX volatility

Macro Tourist Wants To Talk About Vanna White (And Also Volatility)

"...it is becoming more of a self-reinforcing process with changes in VIX causing changes in the underlying asset".

"...it is becoming more of a self-reinforcing process with changes in VIX causing changes in the underlying asset".
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2 comments on “Macro Tourist Wants To Talk About Vanna White (And Also Volatility)

  1. Kevin, thanks for the clear explanations and examples. Very helpful to those of us out here with limited access to real info from the front lines.

  2. Macro-Man, I have been reading H-Man posts on McElligott about the same topic but everything was flying over my head. Gamma flipping, spot changing, weak on the wings, you get the drift. You did a nice job of explaining that when dealers have to hedge that book, they have to sell into falling market to square the books which is quite a negative feedback loop. More like a death spiral. And they have to do a lot of selling to get hedged correctly. Thanks again for the insight.

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