Dispersion Trading Part 3
In part three of this series, we provide a toolkit for anyone who is interested in trading dispersion.
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Noel Smith, Leo Capalleja & Sebastian Pachon
- Jul 10
- 5 min
Dispersion Trading Part 2
Implied volatility expectations vs. reality and why they matter for option valuation and Dispersion trading.
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Noel Smith, Leo Capalleja & Sebastian Pachon
- May 23
- 2 min
Dispersion Trading Part 1
The Dispersion trade is directionless and usually profits from unexpected news about individual stocks.
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Noel Smith & Leo Capalleja
- Jul 18, 2022
- 3 min
Is Volatility Performing in 2022?
We illustrate how and why hedges are massively underperforming in 2022.
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Noel Smith & Leo Capalleja
- Feb 9, 2022
- 3 min
Risk Parity and Why You Should Care
Used by the largest hedge funds, this strategy could be a victim of its own success due to its popularity and systemic risk to correlation.
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Noel Smith & Leo Capalleja
- Dec 23, 2021
- 3 min
Correlation, A Hidden Risk To Your 60/40 Portfolio
The 60/40 portfolio has worked well for a long time. But what if stocks and bonds move down at the same time?
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Noel Smith & Leo Capalleja
- Aug 4, 2021
- 1 min
Three Reasons to be Bullish on Bonds
In this brief 'show and tell' we give you three reasons that make a bull case for bonds.
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Noel Smith & Leo Capalleja
- Aug 5, 2020
- 3 min
A Better Way To Short Volatility
Being short volatility has historically been a good trade, but it is important to mitigate the tail risk of any short volatility position.
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Noel Smith & Leo Capalleja
- Jul 23, 2020
- 1 min
What To Do About Silver
How to profit from silver's sharp increase in price and volatility.
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Noel Smith & Leo Capalleja
- Jul 22, 2020
- 2 min
A Case For Buying VXX Puts
Why you should buy VXX puts in the face of an impending volatility crush.
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Noel Smith & Leo Capalleja
- Aug 6, 2019
- 2 min
The Hidden Risk in Holding to Expiration
Summary investment return statistics do not provide a clear enough picture and often omit the long-term effects of tail risk.
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Noel Smith & Leo Capalleja
- Aug 6, 2019
- 2 min
The Tesseract and the Benefits of Options
Options, like the tesseract, add dimensions to our otherwise flat and binary investing world of price up, price down. Most investors are...
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