The Regime change in the market is real.
It’s much different today than it was in the first half of the year.
And that’s perfectly normal. Anything else would actually be very unusual.
The strategies that worked in the first 6 months are not working well in this environment. But the strategies that did NOT work in the first half of the year are much better in the current market.
See: Regime Change
For example, high volatility strategies were mostly terrible in the first half of the year. That’s because we were in a low volatility environment. It was our low vol strategies that worked great for us.
So since the market is behaving differently now, then so are we.
Volatility is a little more elevated, so that means we’re getting paid to play. That wasn’t the case earlier this year.
Freeport McMoRan, for example, has some juicy premiums and is trading in a massive range.
Perfect: [Read more…]