The “Inevitable” Return Of Volatility: One Pro Explains The Ticking Vol Time Bomb

“Stewards of capital should be actively considering the potential knock-on effects that result from contractual deleveraging triggered by the inevitable volatility spike.”

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“Sharks In The Sea Of Tranquility” – Looking Ahead

So what did we learn last week? Well, we learned that despite what amounts to an institutionalized policy of suppressing vol, there’s only so much markets can take when it comes to political turmoil. The S&P and the VIX finally met a near-term Waterloo on Wednesday following new revelations regarding what certainly looks like a concerted…

“We’re Approaching A Margin Call” – The “Trump Put,” Volatility, & One Analyst’s Masterpiece

“When expressed in options language, the Trump put has the same decomposition as the Bernanke put during the QE period. Effectively, this is a supply of equity vol to the market financed by “selling puts” on President’s credibility. However, in contrast with the Fed whose communications with the markets reduced volatility, the new political transparency, as communicated through presidential tweets and political discourse, has been generally volatility increasing.”