Keeping it Simple on the Road | Ep.8: Market-Making is Making Markets
Keeping it Simple with Simplify Asset Management
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The Long Fall in Dynamic
I think volatility is very path dependent and much like my puts that went to heaven in 2022, the path of volatility has to be greater than what was priced into it at trade inception. The relative underinvestment and over hedging of equity books now, I think would be difficult to get those shocks where people that are forced to cover a wall or sell at a steeper price. Topping off the TGA is something that is predictable and can be monitored. We're not going to slide down. It'll be a gap down. If we get to 3,600, I would anticipate it would happen for those liquidity reasons outside of a war, COVID or whatever else.
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