After market whipsaws, banks put new twist on QIS options

Variable strike options aim to catch recoveries after volatility spikes

Investors that want to cap losses to systematic strategies have to give up something in return. 

The traditional trade-off has been the ability to participate in bounce-backs after sharp sell-offs – or at least it was, until recently. 

Banks offering exposure to quantitative investment strategies (QISs) via options have long relied on two methods to limit losses: volatility target mechanisms, which