Volatility carry as the insurance premium of markets
The guest defined carry as getting paid to hold a risk someone else needs to offload, analogous to an insurance premium that works until it doesn't.
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The Callback
Scaling into and out of inverse VIX
28 weeks between these two statements.
The thesis presented was that the profitability of selling options hinges on capturing the spread between implied volatility (what the market prices in) and realized volatility (what actually happens), analogous to an insurance model.
The guest defined carry as getting paid to hold a risk someone else needs to offload, analogous to an insurance premium that works until it doesn't.