Kris Sidial - Long Volatility for the New Regime (S3E14)
Flirting with Models
00:00
Taking Profits Off the Table
When you're playing a downside put and you start with something that's five or ten delta, when the market starts to make a move to the downside, suddenly your delta massively picks up. How do you think about monetizing that profit and managing that risk in your book at a time when your call has been correct? That's why traders get paid the big bucks is to make these type of calls. This is where the quant who's actually making a killing, he actually falls short is because as a trader you have to find that equilibrium and maintain that mentality like look I need to take profits off the table and I need to do this in tears.
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