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Jared Woodard: Probably. First, some context. Here’s the one-month volatility risk premium in the U.S. Oil Fund (NYSEARCA:USO) options since 2007. Read more…
When leveraged and inverse ETFs were first launched, many investors weren’t aware of the negative effects that daily rebalancing would have on the long-term performance of those ETFs Read more…
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Several clients mentioned the sizable decline in implied volatility yesterday and characterized current levels of IV as too low to sell. I think I can sympathize with that intuition Read more…
This is the third post in the series I’m writing to introduce the VIX Portfolio Hedging VXH Strategy. The most important feature of the VXH strategy is that it offers protection against severe market Read more…
Standard accounts of the option Greeks will explain that delta measures the rate of change in the price of an option per unit change in the underlying asset. The text I use with mentoring clients, Read more…
This is the second post in the series I’m writing to introduce the VIX Portfolio Hedging (VXH) Strategy. I am discussing the problems with conventional portfolio hedging methods first – before Read more…
Since the 2008 financial crisis, I’ve been contacted regularly by clients and readers who are looking for effective and cost-efficient methods for hedging their portfolios. The more time I’ve Read more…
Traders have been increasingly eager to speculate on the future direction of interest rates. The volatility implied by options on 2-, 5-, 10-, and 30-year Treasury notes and bonds has lifted the Read more…
People are excited about tail risk. On the institutional side, banks and asset managers are packaging up complex, multi-asset hedging products and selling them to pension funds, endowments, and Read more…
Felix Salmon is doubtful about whether it is possible to hedge tail risk, and I wholeheartedly agree with the data he cites. It shows that of eight major asset classes, only volatility and managed Read more…
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