January 29, 2024· 45 min

Why the Short Volatility Trade Is Back and Bigger Than Ever

Kris Sidial

Orality

Model

71%

Oral-dominant (speeches, podcasts, storytelling)

Speaker Breakdown

HostTracy Alloway(2,188 words)

M:28%

HostJoe Weisenthal(1,535 words)

M:29%

GuestKris Sidial(3,742 words)

M:28%

Oral Indicators

Agonistic33%

literally, completely, very

Engagement58%

you, our, your

Memory Aids100%

listen, now, so

Repetition100%

like (87x), market (56x), because (48x)

Parallelism83%

And I'm Joe Weisenthal...., So that was February when was ..., So it's the sixth year anniver...

Sound Patterns85%

70 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases7%

at the end of the day, you know what, i mean

Literate Indicators

Hedging8%

could, maybe, rather

Passive Voice3%

being rewarded, is when, been oversupplied

Abstract Nouns22%

investment, recommendation, moment

Subordination11%

because, though, until

Sentence Length32%

Avg: 13.0 words/sentence

Word Complexity46%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style42%

482 personal pronouns found

Descriptive Style81%

literally, completely, really

Description

There are plenty of one-off risks at the moment, but it seems like betting on pretty much nothing happening is more popular than ever. Investors are increasingly reaching for a wide variety of derivatives to bet against volatility. Those derivatives include one- and zero-day options which expire in 24 hours or less, and have become a hot button topic on Wall Street. So what's the impact of this explosion in options trading? Why is it happening at a time when the possibility of major disruptions seems more likely than ever (even if realized volatility remains low)? And what impact could it have on the wider market? In this episode, we speak with Kris Sidial, Co-CIO of Ambrus Group, about the return of the short vol trade. See omnystudio.com/listener for privacy information.

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