Managing Directional Risk with Beta and Theta

Managing Directional Risk with Beta and Theta

By

|

When things get weird in the financial markets, as they have in 2020, seasoned investors and traders like to tighten up their adherence to disciplined risk management—particularly as it relates to directional exposure.   Reviewing some of the odd occurrences so far this year, the all-time high achieved in the VIX would likely be at the … Continued

Managing Directional Risk

By

|

While many traders focus on statistics-based volatility positions that leverage the mean reversion philosophy, it’s important to recognize that even these types of exposures can be subject to a degree of directional risk—especially aggregate directional exposure at the portfolio level.  The question is whether or not there’s a good way to manage that risk, or … Continued