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Keeping it Simple on the Road | Ep. 3: 2020 From A Position of Strength

Keeping it Simple with Simplify Asset Management

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Is Implied Valls Trading Over Realized?

Short dated options used to be typically the most expensive partof the optionality complex. Theta was really high. We're always looking for what's relatively cheap and what's really relatively expensive. You'll see implied valls trade eight to 12 % over realized over the lost torf points points, nin % %, percentage points. And u, that's th insurance premium. That's why you're your systematic one month vall sellers who dealt hedge every day at two o'clock or four o'clock,. They're reaping this insurance premium once the mill take a big hit, and they're making money, clear cause they're still alive.

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