You might not like the numbers you see on Hedgeye’s Implied and Realized Volatility chart. But Keith McCullough isn’t one to sugar coat the truth.
“If you don’t know that everything’s relative yet, you need to work on that,” explains Hedgeye’s CEO in this clip from The Macro Show. “Everything’s relative. Just because the number is positive and double digits, as opposed to what you really want, which is a deep implied vol discount.”
“Go back to the days when the VIX Front Month was at 12,” he adds. “You had plenty of implied vol discounts. Maybe you didn’t act on it that day.” But maybe you should have.
Watch the full clip above.
