Pimco Gets Impaled on a Volatility Spike

This is crazy to me: selling massive quantities of volatility when volatility is at very low levels. Frustrated with buying volatility protection for years with no big payout, investors in 2014 decided to sell volatility protection themselves. Also known as shorting “vol”, the strategy typically entails selling options — a type of derivative that pays […] View the full post at: Pimco Gets Impaled on a Volatility Spike Related posts: Pimco’s Gross Urges Fed to Take Dramatic Measures to Unclogg Credit Markets Wall Street Gains Amid Oil Spike Short Squeeze Triggers Sharp Volatility in Stocks, Have We Reached a Near Term Bottom?