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Unpacking The Election’s Impact On Markets | Cem Karsan

Forward Guidance

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Volatility Trading

  • Take profits on long-dated call options after volatility expansion and market rallies.
  • Reload positions during market dips when volatility becomes cheap.
  • Conviction in market flows can be maintained until early January.
  • Don't blindly hold long-dated calls and expect continuous profits, manage theta decay.
  • Out-of-the-money calls offer better risk-adjusted returns when volatility is low, but remember that markets are higher now than they were a while ago when volatility was also low.
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