Hari Krishnan - Market Tremors & Tail Hedging (S5E11)
Flirting with Models
Tail Risk
20 22 has been quite different because the standard tail risk idea, which is to lock and load, let's say, a 20 % or 25 % out of the money put, hasn't worked. Why hasn't it worked? Because volatility didn't go up enough from where it was. And you also face ta head wind, where if ball goes from ten to 20, you make a hekof a lot more than if it goes from 30 to forty five. If you have a fixed budget, you can really go to town if volatilityis low. You have to be much more conservative conservative if it's higher. The other one is that the market has gone down, at least up
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