Hi there, love the posts. which post explains how to use implied volatility vs realized vol ? Or is it just that an implied volatility premium implies that it “pays” to be long the respective asset. Or is there more to it?
Ser, if we are dependent on tomorrow’s macro catalyst to define the ultimate direction for the FOMC meeting decision (which at the moment is pretty much a coin flip as you state, and the main driver for bonds and equities),
Why not just hedge through the event and protect the high vol extremity entry in case we see further continuation of the initial trend.?
Really trying to understand the logic behind why you would take the risk trades off and risk your initial entry instead of just taking hedges off if we get confirmation of directionality after the event.
Hedges are fine too
Hi there, love the posts. which post explains how to use implied volatility vs realized vol ? Or is it just that an implied volatility premium implies that it “pays” to be long the respective asset. Or is there more to it?
dobad is a pepe master
🤝
https://open.substack.com/pub/capitalflows/p/macro-alpha-primer-positioning-premiums?r=21qfqf&utm_medium=ios
Pepe is looking mighty happy in that chair :)
I've gotta ask...what's the green book and why so many copies? Also the real hedge for it all is on the floor next to them...haha.
Loeb classics
Team hedged.
Ser, if we are dependent on tomorrow’s macro catalyst to define the ultimate direction for the FOMC meeting decision (which at the moment is pretty much a coin flip as you state, and the main driver for bonds and equities),
Why not just hedge through the event and protect the high vol extremity entry in case we see further continuation of the initial trend.?
Really trying to understand the logic behind why you would take the risk trades off and risk your initial entry instead of just taking hedges off if we get confirmation of directionality after the event.