Trade of the month: choosing products when volatility is high

Trade of the month: when volatility is high

rollercoaster

In this, the second of two articles about volatility, we examine the best product selection for when levels rise from their current low level.

Autocalls and leveraged return notes are extremely common in today's market, and, as they are unaffected by changes in volatility, they may remain popular if it rises.

Products that would directly benefit from volatility increases include participation products and straddles because they simply take a long volatility position at the outset. However, these

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: