Where the Current HiPOS Conservative Trade Stands - We always say that HiPOS does ok even if markets move against us. So long as markets don’t move too much too early in the lifecycle of a trade.
Derek and Jay are back discussing how higher interest rates have impacted the price of call and put options. They use some examples of what happens to options prices due to rates and dividends.
Derek is here to speak in depth about the high points of the Bank of America and Bloomberg pieces on protection being on sale.
New HiPOS Conservative Trade Initiated - Right after I wrote an article explaining why being in cash between trades is normal https://zegafinancial.com/blog/hipos-update-why-being-in-cash-between-trades-is-normal-and-how-to-set-expectations-for-a-short-volatility-strategy , ZEGA’s traders were able to identify a new short put spread position that qualified under our strict rules for entry.
Jay checks in with Derek to discuss people that always predict horrible market crashes are coming and why it’s so unhelpful for investors. Then they talk through what the market fears (besides the normal stuff) at this point including profit margins and looming strikes.
HiPOS Update: Why Being in Cash Between Trades Is Normal and How to Set Expectations for a Short Volatility Strategy