Archived @Mercury_Eunomia, realized vol is still 1/2 of implied volatility (trading)
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Archived on: 1/16/2018 10:00:00 AM
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Archived @Mercury_Eunomia, realized vol is still 1/2 of implied volatility (trading)
submitted ago by [deleted]
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[–] not_drunk ago
Selling equity volatility at all time lows is not the best use of funds.
Better off selling foreign exchange vol.
Don't forget to hedge your delta.
[–] [deleted] ago
[–] not_drunk ago
Big players are generally short vol.
50% of a small number and add in relative to cost of hedging the delta. Profits are smaller than you think.
IMHO. Time to get long vol. Short vol trade has been winning a very long time and really crowded now.
Curve steeper on vol would be conservative and definitely worth it.