7 Aug 2026, 20:50 UTC95 views1 reactionsread 8 August 2026 Risk Asymmetry for Wednesday the 12th
If CPI prints hot (driven by oil), the market is dangerously mispositioned, walking into a stagflationary print with:
Negative payrolls already on the table.
No Fed put available to cushion the blow.
Implied volatility and the term structure still priced strictly for the benign scenario.
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7 Aug 2026, 20:44 UTC104 viewsread 8 August 2026 Photo
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5 Aug 2026, 22:42 UTC464 views3 reactionsread 8 August 2026 Photo
Skew is severely depressed, and forward returns are, more often than not, negative. Furthermore, the positive spot-vol correlation we witnessed over the past session is frequently a top signal.
Additionally, 7800 served as the primary upside target based on vomma exposure.
As a reminder :
Vomma measures the rate of change of vega with respect to changes in implied volatility (second-order volatility sensitivity). V…
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30 Jul 2026, 11:53 UTC489 views4 reactionsread 8 August 2026 File
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30 Jul 2026, 09:42 UTC469 viewsread 8 August 2026 Photo
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30 Jul 2026, 09:24 UTC459 views2 reactionsread 8 August 2026 Photo
After a shock, this complex eventually turns buyer again: volatility recedes, the formula authorises reinvestment, it buys back. That buyback is a mechanical support spread over several months
But it does not trigger when price turns. It triggers when volatility turns.
Those two moments often coincide, and people then believe it "buys the low". They do not always coincide.
And the trigger is not a volatility level…
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30 Jul 2026, 09:22 UTC360 viewsread 8 August 2026 Photo
Late in the cycle, what is the Vol control effect
First, it dampens everything. Every acceleration, up or down, gets sold. It shaves off violent rallies and flattens the jolts. The market looks calm, and that calm is partly manufactured by it: the complex sustains its own tranquillity.
Second, it is fully invested. At 10% volatility it holds 100% of its capacity. So it has the maximum amount to sell.
And there is …
30 Jul 2026, 09:04 UTC318 views3 reactionsread 8 August 2026 Photo
Since it only sees amplitude, it does the same thing in both directions: when the market moves hard, it sells. But selling doesn't have the same consequence depending on which way the market is going.
The takeaway: it is the stabiliser of rallies and the accelerator of declines. The only systematic player to hold both roles at once.
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30 Jul 2026, 08:52 UTC416 views3 reactionsread 8 August 2026 Photo
VOL CONTROL FUNDS
A volatility-controlled fund doesn't promise a return — it promises a level of risk. The contract specifies X% annual volatility and that promise has to hold every single day. The only way to hold risk constant on an asset whose risk varies is to adjust the quantity held.
The rule => Eₜ = min( cap , σ* / σ̂ₜ )
Eₜ = invested share · σ* = the mandate's target volatility · σ̂ₜ = measured volatility
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27 Jul 2026, 13:49 UTC429 views5 reactionsread 8 August 2026 If the Democrats win the House of Representatives, companies that rely most heavily on Medicare could see their share prices rise.
MOH by instance
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27 Jul 2026, 12:50 UTC583 views9 reactionsread 8 August 2026 Photo
Long iron condor and go away ?
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21 Jul 2026, 21:00 UTC834 views4 reactionsread 8 August 2026 Photo
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