How MKM's Jim Strugger Is Trading the VXX

How MKM's Jim Strugger Is Trading the VXX

Assessment

Interactive Video

Business

University

Hard

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The video discusses the concept of volatility and the volatility of volatility, focusing on the VXX and VIX indices. It highlights the current high volatility environment and the shift in investor behavior from long to short volatility positions. The video emphasizes the importance of pairing long volatility exposure with existing hedges at both the single stock and index levels. It also outlines a strategy involving short-duration options to manage and monetize volatility effectively.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the VXX in relation to volatility?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the perception of volatility changed since the period from 2012 to 2017?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the term 'short volatility' imply in the context of the current market?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential risks associated with getting long volatility?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategies are suggested for managing long volatility exposure?

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