Archive for Month: May 2017
The Perils Of Selling Volatility When Volatility Is So Low
Once the piece I wrote yesterday went online (“Why Is Volatility So Low and What Should We Do Now?”), I received a number of questions on why now is the time to quit selling volatility and be careful. Couldn’t we have said the same thing a few months, or maybe […]
Why Is Volatility So Low And What Should We Do Now?
Last week the VIX closed at one of its lowest levels in recent history. Why? And what can we do about it? In my view, there are a number of inter-related reasons why option prices and option implied volatility are so low, and they might suggest some ideas for portfolio […]