Is An Equities Vol Regime Shift In The Offing?

Don't look now, but there's a regime shift afoot in the equities index vol space. I know, I know: You've heard that before. And these shifts "always" peter out, where that means instances of steeper skew witnessed over the past 18 or so months invariably proved fleeting. But this time might be different. "Investors finally capitulated in recent months towards high nets [and are] long enough to necessitate [a] resumption of demand for puts and downside hedges," Nomura's Charlie McElligott said

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4 thoughts on “Is An Equities Vol Regime Shift In The Offing?”

Can the HEI crowd recommend primers for the “greeks” for us interested retail guys??

Chewbacco

May 31, 2024 at 9:48 pms Reply

I don’t have a specific reference but you can find a lot of good intro info just by searching on Investopedia.

Thanks.

Great. Let the games begin. And the ludicrous narratives from the “pros” not in the know.

If I understand it correctly, we could then say that the more people hedge their investments, the more people that don’t hedge risk a bigger loss (if they were to sell of course) ?