Options trading, volatility strategies, and market risk analysis by Kris Sidial
Kris Sidial: Key consideration for hedge fund investors in assessing return streams
Kris Sidial highlighted the importance for hedge fund investors and traders of carefully evaluating a return stream before making assessments. He pointed out that even if a strategy shows strong ...
Short interest charts overlook critical flows, Kris Sidial notes
Kris Sidial said many short interest charts being shared fail to capture the underlying flows shaping the market. He explained that most firms are not making outright short bets, and that efforts ...
Kris Sidial: Ongoing slowdown in equity financing is stalling public equity market flows
A significant slowdown in equity financing that began in June is continuing to stall flows in public equity markets. Kris Sidial said that the traditional firepower needed to drive fresh price ...
Building narratives around market makers reveals inexperience, Kris Sidial notes
Kris Sidial stated that constructing narratives about the market-making community is often a strong indication that someone lacks real market experience. Sidial described it as a significant red ...
Kris Sidial: Public equity stimulus attempt prompts attachment to stock inflows
Kris Sidial described what he sees as the largest attempt to stimulate equities through public hoarding, emphasizing a strategy where the general public is given direct exposure to company stock. ...
Setting return objectives may not suit long volatility investing, Kris Sidial notes
Kris Sidial described his skepticism toward setting specific return objectives for investments, particularly when dealing with long volatility strategies. He noted that investment allocators often ...
Kris Sidial: Notional short Vega remains at historically high levels
Kris Sidial underscores that notional short Vega in the market is still at massive levels compared to past periods. He cautions that this does not mean investors should naively buy puts, but ...
Academic white papers often lack practical insight, Kris Sidial notes
Kris Sidial examines the influence of academic white papers on the practical aspects of finance. Sidial observes that while consultants, pension funds, and the endowment community rely heavily on ...
Kris Sidial: Market breadth debates overlook changes in market structure since 2015
Kris Sidial reflects on the ongoing debates about market breadth in financial markets. He points out that such discussions remind him of a period around 2015, when veteran traders realized they ...
VIX uses 30-day weighted SPX options strip for calculation, Kris Sidial notes
Kris Sidial continues to observe widespread misunderstanding around how the VIX is calculated. According to Sidial, the VIX is derived from the bid-ask spreads of a 30-day weighted strip of SPX ...
Kris Sidial: Large recurring selling pressure observed in ES futures market
Kris Sidial reports that over the past three months, there has been a repeatable and extremely sizable footprint in the ES futures market that has consistently pushed equities lower. Sidial ...
Vance Harwood made significant impact in VIX ETP market, Kris Sidial notes
Kris Sidial paid tribute to Vance Harwood, describing him as a wealth of knowledge in the VIX ETP market. Sidial highlighted Harwood's consistent output of high-quality research and thoughtful ...
Kris Sidial: Volatility hedge fund strategies balance quantitative and discretionary trading
Kris Sidial shares his perspective on strategies at a volatility hedge fund. He explains that his approach blends quantitative and discretionary trading methods. Sidial emphasizes that operating ...
Debate continues over value of trading psychology, Kris Sidial notes
Kris Sidial explores the ongoing debate within the trading community regarding the importance of trading psychology. He points out that while many traders, himself included, believe trading ...
Kris Sidial: Asset managers often see convexity as portfolio insurance
Kris Sidial observes that many traditional asset managers approach convexity and long volatility primarily as defensive tools for portfolio protection. He notes that these strategies are often ...
Quality and understanding of market dynamics have fallen, Kris Sidial argues
Kris Sidial criticizes what he sees as a significant decline in the quality and general understanding of market and statistical dynamics on the sell side. He points out that a major bank ...
Kris Sidial: Equities weakness in June linked to funding stress
Kris Sidial observes that the primary factor behind the weakness in equities during the month of June was funding stress. He remarks that much of the market commentary focused on macroeconomic ...
Old school traders lost money during early quantitative easing, Kris Sidial notes
Kris Sidial reflects on his early experiences in the financial industry, highlighting the uncertainty that surrounded the economy in 2012. Many traders and investors at that time were deeply ...
Kris Sidial: Market volatility reveals performance of participants over 10 years
Kris Sidial highlights the impact of rising volatility on market participants. According to Sidial, when volatility increases, it becomes easier to identify those who are performing well or ...
Funding market expertise often reveals professional traders, Kris Sidial notes
Kris Sidial highlights how anonymous accounts can often be identified as professional or institutional traders based on their knowledge or participation in the funding market. According to ...
Kris Sidial: U.S. derivatives market growth outpaces $2 billion hedge fund scale
Kris Sidial observes that the U.S. derivatives market is experiencing rapid expansion. According to Sidial, the market's scale has shifted dramatically over the past two decades, noting that a $2 ...
