Super Tuesday Hedging Shows Up in Volatility Curves

Super Tuesday Hedging Shows Up in Volatility Curves

Assessment

Interactive Video

Business

University

Hard

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The video discusses the dynamics of market volatility, focusing on the behavior of traders and the VIX curve. It highlights the tendency of traders to sell volatility despite potential risks, and examines the implications of the VIX curve's behavior, particularly in relation to upcoming events like Super Tuesday. The discussion includes insights into market sentiment, short-term volatility, and the role of dealers in hedging.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contribute to the attractiveness of tail hedges in the current market?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Why do some traders continue to sell volatility despite the risks involved?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the VIX curve reflect market sentiment and expectations?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways do external events, like Super Tuesday, impact traders' perceptions of volatility?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What implications does the inversion of the VIX curve have for traders?

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