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MacroVoices #393 Harley Bassman: Convexity Spells Opportunity

Macro Voices

NOTE

The Impact of Fed Rates on S&P 500 Hedges

"Page 25 shows the cost of an out of the money put on the S&P, which is historically low. This is due to the Fed changing rates and inverting the yield curve. The cheaper price is not because the market is less worried, but because of the yield curve effect. It's a great opportunity to take advantage of the situation."

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