Volatility Markets Are Complacent | Kris Sidial on Tariff Risk to Stocks, Dispersion Trade, and Margin Risk
Monetary Matters with Jack Farley
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Understanding Margin Risk and Volatility Dynamics
This chapter explores margin risk in financial markets, focusing on how investors engage in forced buying of options like VIX calls during market stress. The speakers examine the VVIX, its implications for market sentiment, and the shifting behavior of volatility in relation to stock prices. The discussion underscores a bearish outlook for equities, emphasizing the need for effective hedging strategies amidst changing market conditions.
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