Trade of the month: choosing products when volatility is high
In this, the second of two articles about volatility, we examine the best product selection for when levels rise from their current low level.
Autocalls and leveraged return notes are extremely common in today's market, and, as they are unaffected by changes in volatility, they may remain popular if it rises.
Products that would directly benefit from volatility increases include participation products and straddles because they simply take a long volatility position at the outset. However, these
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