“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.”


JP Merlin Returns: Kolanovic Says Buy The Dip

Remember back on Tuesday night when Goldman decided 19 hours before the Fed hike was as good a time as any to downgrade US equities?… Yeah, well while everyone else was focused on the headline (“big trees fall hard“, “downgrade equities to neutral,” etc. etc.) we skipped straight to what we thought was actually interesting in…