Volatility Erupts in Markets

The video discusses the current market conditions characterized by low trading volumes and high volatility, exacerbated by trade tensions. It highlights the increased demand for tail risk protection options, drawing parallels to the volatility spike in February 2018, known as Volmageddon. The renewed volatility is impacting popular trades, particularly the carry trade, which relies on low volatility to be profitable. The video provides insights into how these market dynamics are affecting traders' strategies.

What does the term 'tail risk protection' refer to in trading?

How has the demand for tail risk protection options changed recently?

What was the significance of the VIX explosion in February 2018?

What are the implications of renewed volatility on traders' favorite trades?

What impact does low volatility have on the carry trade?