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Your timing was good since you bought when the market may have been mispricing volatility. Assuming these are puts, a lot if your gain is from the volatility sh
by usaar333 7y ago
Your timing was good since you bought when the market may have been mispricing volatility. Assuming these are puts, a lot if your gain is from the volatility shoot up.
At this point, the market has corrected volatility pricing dramatically (vix is doubled). Odds are over 50% we'll see sp500 drop below 2900 in next month (Black Scholes). But that doesn't mean a short is profitable - I recall 2008 but also the false recession of late 2018 - few people could have accurately predicted both results.