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Can Vol Stage A Comeback?
They're hedging downside again. A little bit anyway.
For months, the options space was defined by the juxtaposition between negligible demand for downside protection against persistent interest in upside optionality given the never-ending index melt-up.
That conjuncture resulted in a pancaked skew, which in turn reduced the risk that any nascent selloff could morph into something more serious through familiar selling-begets-more-selling "doom loops."
Although it'd be premature (and that's an
Thanks for posting this.
So we now have retail selling vol via Coverdale call ETFs. What could possibly go wrong? Barring a true “black swan” event, not much, eh?
well writing a covered call is slightly safer than double inverse front vix futures, i guess!