Thorsten Wegener On the Simplest Way to Understand Option Markets
Macro Hive Conversations With Bilal Hafeez
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Eventually Volatility Will Come Down
When volatility shoots higher to unusually high levels, almost invariably, volatility ends up falling. In the recent corona panic, we had a volatility of around 80 in the market. Then you look at the oil markets, when oil was trailing negatives, we had volatilities beyond three 400 in there. The extreme point o volatility on the downside is zero and then markets don't move any more. Eventually volatility will come down - that's what it always does. But how do you define too high? I mean, so say vix, you know, let's say it's 30 % or forty er cent, or 50% or 60%. And i didn't make any information out of the
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