FYI: My friend Tracy Alloway has the definitive article about what went on with the volatility exchange traded products that blew up this week and probably triggered the historic bout of volatility we’re undergoing right now. The fact that these are Frankenstein products, built by maniacs, for use by maniacs, should be stated at the outset.
Here’s a sample quote from the story so you can understand what we’re dealing with:
“If you’re going to play the short-vol game, basically the goal is to just stay alive and avoid any circumstance where things can go up in smoke in minutes.”
Regards,
Ted
http://thereformedbroker.com/2018/02/07/the-best-hedge-there-is/
