"Graveyard Day" Is In Store For Short Volatility Traders | Kris Sidial

Kris Sidial, co-CIO of Ambrus Group, joins Monetary Matters to break down the conditions in volatility markets that exacerbated the sharp sell-off in early August, and explain why he thinks the risks embedded in the "short vol" trade have only gotten worse. Recorded on September 20, 2024. __ Follow Kris Sidial on Twitter https://x.com/Ksidiii Follow Jack Farley on Twitter https://x.com/JackFarley96 __ Timestamps: 00:00 Intro 1:00 Short Volatility Trade Will Have A "Graveyard Day" Eventually 15:20 Volatility Concepts And Terms Explained 18:30 What Drove The August 5th Market Crash 28:05 Gamma vs. Vega, And How Different Types of Volatility Products Shine In Different Types of Sell-offs 32:30 Volatility Details of August 5 Market Crash 36:00 Critiquing Black–Scholes & Other Wonky Vol Topics 41:30 Most Common Mistake Professional Vol Traders Make 50:10 Why So Many Allocators Hate Tail Risk Funds (Because They Have Gotten Burned) 1:05:00 Volatility Proprietary ("Prop") Trading vs. Tail Risk Hedge Funds 1:15:00 Closing Thoughts __ Disclaimer: Nothing discussed on Monetary Matters should be considered as investment advice. Please always do your own research & speak to a financial advisor before investing. #investing #recession #stocks #economy #trading #inflation #economics #volatility