Forward Guidance Hari Krishnan on Commodity Tail Hedging, Weather Volatility, And “Disaster” VIX Trades
11 snips
Jan 5, 2024 Hari Krishnan, head of volatility strategies at SCT Capital Management, discusses his research on commodities, weather volatility, and the relationship between implied and realized volatility. They explore finding upside convexity in commodity options, the structural bull case for commodities, and the challenges of predicting weather compared to the stock market. They also examine the correlation between volatility and stock prices, the impact of interest rates on various markets, and the liquidity of futures contracts.
Chapters
Transcript
Episode notes
1 2 3 4 5 6 7 8
Introduction
00:00 • 3min
Investing in Commodities: Strategies and Alternatives
03:07 • 24min
Discoveries in Commodity Tail Hedging and the Importance of Seasonality and Contracts
26:52 • 3min
The Advantages of Long Positions in Commodities
30:15 • 8min
Weather Derivatives and Predicting the Stock Market
38:12 • 4min
The Relationship Between Volatility and Stock Prices
42:27 • 10min
Interest Rates, the Economy, and Various Markets
52:24 • 18min
Liquidity of Futures Contracts and the Impact of Large-Scale Liquidation
01:10:03 • 3min