@ftning@stevehou It’s me, your MS PWM coverage guy, you didn’t show up to the zoom and my manager is really concerned - you haven’t bought any structured products this quarter. Are you getting enough income? Is your upside capped enough?
"The number of stocks in the S&P top 100 trading with inverted call skew (a sign of extremely bullish sentiment where the OTM call trades at a higher volatility than the ATM call) has surged to a high of ~20% (vs. historical average of just 3%)."
-Cboe Xu
Fun chart and appropriate on a day when the $VIX rallied 4.2% and all the VIX futures contracts also moved substantially higher as stocks rose to new all-time highs.
But the catch here is that ABS is made from crude oil - well, strictly speaking from both oil and gas.
Every kilogram of Lego blocks in your cupboard or on the toy store shelves began its life as two kilograms of crude oil.
Our current daily market sentiment reading:
This Market Sentiment Meter depicts our current allocation to the S&P 500 and is updated daily after market close. For more information and disclosures, please visit: https://t.co/3JVZIboWwo
Read about today's market anomaly in this academic paper: https://t.co/JmP5KLVRfv
Disclaimer
The thoughts and opinions expressed in the tweet are solely those of the author. The discussion is designed to provide a reader with an understanding of how the Fund's investment adviser manages the Fund's portfolio.
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