Volatility Defines Markets Right Now
Real Vision: Finance & Investing
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Is the Market Going to Be Volatile?
The market can easily move through those break yel, so we're ging to have some volatile moves. We have to effectively pay premium both sidesto do that, right? So what you did is you sold some optionality more long dated. But the damage that i'm going to take on my short two months strangle will be limited. That implied volatility won't go against me too badly. Cat's already priced at 75 ight. I suspect the market won't reprice that too dramatically. And in the meantime, the market doesn't move, that boll could go lower. And that thing earns me some time.
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