As always, not investment advice. There are signs that a volatility spike is imminent, which often coincides with a market drop. I have reversed my usual short vol position and bought tail insurance (e.g. OTM puts). Remember vol can fall just as quickly. How long a spike lasts depends on how high it goes.
As always, not investment advice. There are signs that a volatility spike is imminent, which often coincides with a market drop. I have reversed my usual short vol position and bought tail insurance (e.g. OTM puts). Remember vol can fall just as quickly. How long a spike lasts depends on how high it goes.