“The Global Short Volatility Trade now represents an estimated $2 trillion in financial engineering strategies and share buybacks that simultaneously exert influence over, and are influenced by, stock market volatility. Volatility is now an input for risk-taking and the source of excess returns in the absence of value. Like a snake blind to the fact it is devouring its own body, the same factors that appear stabilizing can reverse into chaos. The danger is that the multi-trillion-dollar short volatility trade, in all its forms, will contribute to a violent feedback loop of higher volatility result in a hyper crash.” – Artemis Capital Management
An outstanding white paper about volatility and how it can be the fuel that’s added to the fire.