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Another VIX Dealer Convexity Event: What Really Happened On Wall Street Tuesday
If you're wondering what, precisely, happened to US equities on Tuesday -- where "precisely" means y
Thanks as always for sharing.
Thanks for the post, sir.
As you rightly point out, hedging by option sellers is “pro-cyclical” in the sense that it piles on and exacerbates extreme price swings. Selling options makes you money 350 days a year. The remaining 15 can be very nasty.
I’m still wondering who threw the lit match onto this pile of combusibles this morning.
The ISM didn’t seem like the ignitor as i) it didn’t tell us anything new and ii) NVDA has little to do with “manufacturing” – but the linkages are obscure to me.