February 19, 2018· 28 min
How One Of The Most Profitable Trades Of The Last Few Years Blew Up In A Single Day
Orality
Model
69%
Oral-dominant (speeches, podcasts, storytelling)
Speaker Breakdown
HostTracy Alloway(1,022 words)
M:28%
HostJoe Weisenthal(1,007 words)
M:28%
GuestPravit Chintawongvanich(3,241 words)
M:28%
Oral Indicators
Agonistic41%
literally, completely, totally
Engagement66%
you, our, your
Memory Aids100%
listen, now, so
Repetition100%
know (59x), they (48x), products (38x)
Parallelism100%
And I'm Joe Weisenthal...., But the reason I'm so excited ..., But secondly, we're gonna talk...
Sound Patterns100%
59 question(s), alliteration: "markets move", alliteration: "barclays brief"
Formulaic Phrases7%
you know what, i mean
Literate Indicators
Hedging10%
could, suggest, might
Passive Voice6%
be called, were tied, is called
Abstract Nouns13%
investment, recommendation, volatility
Subordination9%
because, since, until
Sentence Length35%
Avg: 13.7 words/sentence
Word Complexity44%
investment, analyze, anticipate
Academic Markers0%
Impersonal Style34%
380 personal pronouns found
Descriptive Style100%
literally, completely, totally
Description
In recent years, one of the easiest ways to make money in this market has been to bet on low volatility. Up until recently, markets have been exceptionally tranquil, and trades predicated on that tranquility continuing have made a fortune. But two of the most popular vehicles for making that trade, XIV and SVXY got obliterated in one day in early February. On this week's episode of the Odd Lots podcast, we speak to Pravit Chintawongvanich, the head of Derivatives Strategy at Macro Risk Advisors about the episode. He explains what the short volatility trade was, how specifically these funds operated, and how they ultimately became victims of their own success. See omnystudio.com/listener for privacy information.