Short vol opportunities open up amid US options swings

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By Ross Lancaster
15 Oct 2020

Amid heavy options trading activity ahead of a US election that most market participants expect to be bitterly contested and drawn out, opportunities are opening up to play the short volatility position that had proven so popular before the pandemic.

The short vol trade had, with noticeable exceptions such as the 2018 "Volmaggedon", been a popular one during the years of benign market conditions that preceded the spread of Covid-19.

The trade has been out of vogue since then as uncertainty around first coronavirus and then the US elections ...

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