The Short-Volatility Trade Is Back With ETFs Sucking In Billions

ETJ

ETJ

The Short-Volatility Trade Is Back With ETFs Sucking In Billions
Lu Wang - Bloomberg
All of a sudden, the short-volatility trade is back on Wall Street as billions of dollars pour into options-selling ETFs like never before.
With this year's stock rally defying recession warnings and aggressive Federal Reserve tightening, investors have been paying up for defensive strategies that offer income along the way. That's endowed an exotic corner of the exchange-traded fund universe with a record $57 billion of assets.
/jlne.ws/440bV4U
 
Above VIX=20, short vol makes sense. Let's hope it doesn't go crazy like Feb 2018. I think potential China deflation means higher USD & rising equity volatility but you would need a massive one day move higher to do the kind of damage that late Jan & early Feb 2018 did.
 
You must log in or register to reply here.
Back
Top