Core Strategies: Put and Call Performance
Feb 10 2021
Today, Kai and I continue with our Core Strategies series - analyzing Short Puts and Short Calls. So far, we’ve laid the foundation for these two strategies, and we’ve examined how implied volatility and duration impact them both. In this segment, we wanted to take a closer look at their performance over time. Not surprisingly, Short Puts have performed quite well in this extremely bullish market. But somewhat surprisingly, Short Calls have actually hung in there, too, even though that trade would have been directionally wrong for the better part of a decade.