3min chapter

Michael Covel's Trend Following cover image

Ep. 1169: Avoid the Noise with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

CHAPTER

How to Survive a Long Term Capital Strategy

Short volatility would mean it'd be something like selling naked options. You can produce profits this month, the next month, and then you have a long term capital scenario where somebody's leveraged a whole lot. Eventually the volatility blows up though, and they're short the volatility, it just kills them. With the leverage and everything else, three years of monthly profits just go down the drain.

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