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Short Vol ‘Manna From Heaven’
It's been "short vol manna from heaven" lately, Nomura's Charlie McElligott said Tuesday.
This is a familiar tale by now, but it's worth recapitulating given that market participants perpetually underappreciate the read-through of these "esoteric" dynamics for equities, a blind spot which leaves too many top-down folks fumbling in the dark for fundamental answers when stocks refuse to cooperate with what often come across as well-reasoned, wholly rational bear cases.
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Thanks again for sharing this info. If you ignore it you are truly flying blind.
Now & then I appreciate the vol sellers when adding or rolling out some positions.
Above my pay grade.
Why is vol declining? Because I’m selling it. Whyn am I selling vol? Because it’d going down….