Popular Hedge Fund Option Trade Adjusts With Turbulent Market

Premialab featured again in Bloomberg’s latest article: Popular Hedge Fund Option Trade Adjusts With Turbulent Market

While the three-month S&P 500 implied correlation has fallen from a high earlier in April, its average for the month was about double the one-year mean. Quantitative Investment Strategies — of which some look to profit from dispersion — that have proliferated across equity markets recently were broadly active, and gamma-neutral variants in particular did “very well,” according to Adrien Geliot, the Chief Executive Officer of Premialab, a firm tracking QIS offerings.

The abundance of volatility selling strategies also appears to have escaped the tariff turmoil with little damage so far. Some tactical multi-strat funds capitalized on the elevated volatility levels in early April by entering the carry — or short-volatility — trade, he added. Some funds that were able to time the entry point well ended up making double-digit returns in just a few days as volatility collapsed, according to Geliot.

To explore how QIS strategies can enhance your investment approach, please feel free to contact us.

Speak to Us

Access Full Content

Thank you for your interest. Please submit your information to receive this premium article.

Related Insights

Popular Hedge Fund Option Trade Adjusts With Turbulent Market

Popular Hedge Fund Option Trade Adjusts With Turbulent Market

S&P Gamma Flat Dispersion, Trend Following Pair Attractive In Volatile Markets

S&P Gamma Flat Dispersion, Trend Following Pair Attractive In Volatile Markets

Wider Intraday Price Swings in Stocks Prompt Options Strategies

Wider Intraday Price Swings in Stocks Prompt Options Strategies

Discover the power of Premialab

Interested in learning more? Reach out to us to speak with one of our expert consultants.

Request a Demo