Navigating the Short Volatility Trade

This chapter explores the current landscape and future outlook of short volatility trading amidst fluctuating market conditions. It highlights the risks involved, including the potential for sudden volatility spikes due to macroeconomic shocks while discussing historical trends and the cyclical nature of market strategies. The conversation emphasizes the need for rebalancing portfolios and the importance of diversification in volatility-linked investments to manage potential downturns.