​Mid-Week Roundup: Broken Wing Condors Eyed, Low Implied Vol Cause Grief

Implied volatility on the S&P has declined over the last week, making some strategies difficult. One keen investor is looking at so called broken wing condors in a bid to hedge the recent rally, while also collecting a little extra premium. A separate market participant also noted the best course of action could be to reduce size of positions and avoid leverage, as constituents of the index saw large swings to realized vol. Meanwhile in Europe, Assenagon Alpha Volatility has seen significant fund inflows recently, with NAV rising from EUR130 million to around EUR600 million. The firm has subsequently moved to temporarily restrict the issue of new share certificates.