Mind the Volatility Gap (Spread)
VIX is f***g high right? How high is VIX? The blue line on the histogram is VIX as of close… Continue Reading
Liquidity Risk PT2
In our last post, https://www.discretionarydystopia.com/liquidity-risk-pt1/ we highlighted how liquidity risk relates to our every day lives. In this post we… Continue Reading
Liquidity Risk PT1
This article builds on our article on backwardation. In particular it elaborates on what volatility means at a transactional level… Continue Reading
VIX Backwardation PT2: The M1-M2 (VX1,VX2) Spread Risk
In our last post: https://www.discretionarydystopia.com/backwardation-pt1-the-m1-m2-vx1vx2-spread/ We described the fundamental meaning of VIX backwardation. Namely that it hints markets participants may… Continue Reading
Backwardation PT1: The M1-M2 (VX1,VX2) Spread
The VX1-VX2 spread has been attracting a lot of attention recently on fintwit. It seems that many have no idea… Continue Reading