Business Week has an article about the new "volatility asset class". So now we will be tracking the volatility of the volatility indexes? Anyone seriously believe that these so-called hedges will actually decrease volatility?
How much longer before we have "volatility of volatility" asset classes?
http://www.businessweek.com/magazine/content/06_30/b3994046.htm
-raghu.
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The dizzying 100-point-plus swings in the Dow Jones industrial average over the past few months have been enough to send most investors reaching for the Dramamine. But a few money managers are diving into the choppy markets headlong. Using a slew of complicated options and futures strategies, their goal is to trade the volatility itself.
A few years ago volatility traders were niche players at big banks. Now they're moving to established hedge funds or setting up their own so-called vol funds. The pitch to prospective investors: Volatility should be considered an asset class in itself, like stocks, bonds, or commodities.
- [PEN-L] Volatility trading raghu
- Re: [PEN-L] Volatility trading Daniel Davies
