‘Perfect’ VKO trades knock the smile off vol

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Think Foinavon in the 1967 Grand National, or Leicester City in the 2016 Premier League. This year’s against-the-odds winner in derivatives markets is the volatility knockout option, which has rewarded its lucky holders with payouts up to 10 times the size of the initial premium.

“People who bought these in late 2021 did the most unbelievably perfect trade you could imagine,” says Eric Barthe, head of financial engineering at Anova Partners. “They bought the cheapest option possible for exactly

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact info@risk.net to find out more.

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email info@risk.net