3min chapter

Forward Guidance cover image

Forced Retirement Selling May Disrupt Santa Rally | Zed Francis

Forward Guidance

CHAPTER

S&P 500 Options - How Do You Create a Portfolio Construction Tool?

The strategy that you employ, I believe it's called a diagonal. What is the exact structure? And then how is that structure attempting to take advantage of dislocations within the volatility surface? Yeah, so, you know, if we're trying to create a portfolio construction tool that folks can utilize in that kind of means, means we can't be taking like basis risk. Like we don't want to be introducing basis risk, we want this to be a tool that you can rely upon for true diversification during all market environments.

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