A Tour Around the Options World with SpotGamma's Brent Kochuba
Excess Returns
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The Mean Reversion of the Market
A 4% decline in the market could become 8% if this went the other way or something. If everybody has to cover their position, then that could suddenly force flow the other way. And so that kind of situation is where you see the mean reversion where things can get out of control when a lot of people get caught off sides. This is the tail risk.
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