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Writer's pictureNatasha H

Fear can lurk below the surface - Options and Volatility can help identify it

When Jamie Dimon was saying the bank rout was over, you know what wasn't agreeing with him? Option pricing.


In the options world we are able to read tea leaves that can give indications of what might lie beneath the surface - skew, risk premium, futures curve... Fear is fear and there are many ways to read it - and it helps to inform us on covered call, collar and other protective and income overlay strategies.


Respect what the market is telling you in its various forms.



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