Understanding Volatility and Shorting Strategies

Exploring the concept of volatility and its relationship to crises, this chapter discusses the strategy of shorting volatility as an income strategy. It delves into the changing dynamics of pension returns, the impact of low bond yields, and the concept of selling volatility. The chapter also examines the connection between the price of VIX and actual realized volatility, emphasizing the importance of understanding how volatility is priced in the future.