AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
3min snip
The Big Trade Underneath the Strangely Calm Surface of the S&P 500
Odd Lots
Clarity in Financial Trades
In financial trades, having clarity is crucial for understanding the potential risks and outcomes. The example of the Balmageddon ETF from 2018 demonstrates the importance of being able to track the growth and movements of an investment product. In contrast, the current dispersion trade lacks such transparency, making it challenging to quantify the associated risks accurately. The case of the inverse VIX ETF highlights how a previously existing trade was commercialized, leading to the sudden visibility of its assets under management and daily volume. The concept of the SIBO three-month implied correlation index indicates the expected level of dispersion among outcomes for the top 50 stocks in the index, emphasizing the relevance of market capitalization in today's discussions.
00:00
Transcript
Episode notes
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode