Being Long Volatility Is a Winning Trade, Headwaters CIO Rowe Says

The video discusses the current state of market volatility, emphasizing the VIX's position and its implications for trading strategies. It highlights the challenges faced by recent IPOs like WeWork and Peloton, and their effects on public and private markets. The discussion also covers changes in the options market and investor behavior, particularly in light of past market downturns.

What is the main reason the speaker believes being long on volatility is still a viable strategy?

• The market is expected to remain stable.

• There are monetizable events that make the current environment different from 2017.

• The S&P 500 is experiencing unprecedented growth.

• The VIX is at an all-time low.

What is a common characteristic of the recent IPOs mentioned in the discussion?

• They have been successful in the public market.

• They are primarily technology companies.

• They are facing significant challenges post-launch.

• They have high profitability.

How can investors protect their portfolios from the negative impact of struggling IPOs?

• Diversify into publicly traded growth companies with similar characteristics.

• Invest more in private equity.

• Focus solely on technology stocks.

• Sell all shares in growth companies.

What recent change in the options market is highlighted in the discussion?

• A decline in options market volatility.

• An increase in put open interest in the S&P 500.

• A decrease in call options for the S&P 500.

• A surge in options trading volume.

What past event is referenced as a concern for investors as the year-end approaches?

• The Brexit vote.

• The nightmare of Q4 2018.

• The financial crisis of 2008.

• The dot-com bubble burst.