Monetary Matters with Jack Farley Bitcoin Calls Are Cheap, Equity Puts Are Rich | Dean Curnutt on TACO, Variance Drag, Leveraged ETFs, and Cross Asset Vol
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Jul 20, 2025 Dean Curnutt, a volatility specialist and founder of Macro Risk Advisors, sheds light on the intricate world of market risk. He discusses the stark contrast between expensive equity options and cheap Bitcoin volatility, arguing that the latter has room to expand. Dean also addresses how tariffs and rising treasury yields impact market sentiments, warns about the pitfalls of double-leveraged ETFs, and suggests protective strategies for navigating volatility. His expert insights provide a fascinating perspective on current financial dynamics.
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Realized Volatility Drives Markets
- Realized volatility fundamentally drives option prices and market risk assessments.
- Low daily price swings reduce demand for options and hedging activities.
April 2025 Tariff Shock Anecdote
- The April 2025 tariff shocks shattered consensus causing huge daily drops and volatility spikes.
- This shock broke previous market views and led to a rapid risk repricing.
Tariff Turmoil Was Self-Imposed
- The April tariff turmoil was self-imposed and reversible, unlike past crises.
- Market concerns eased after Trump paused tariffs, calming financial contagion.
