Jim Leitner on Creating a Macro Edge, Trading Options and Carry Trades
Macro Hive Conversations With Bilal Hafeez
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Why People Sell Options
The long convexity is why we risk. You're downside. That seems like risk management 101. But so why do people sell options? I think there are a couple of... One is that people think that there are costless trades. The other thing is that for 10 years, we have really low interest rates. People don't like to actually pay for the option because that's a cash outflow.
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