Put Protection Timing Can Actually Be Improved By Waiting For Higher Vols

Although it can be tempting to look to buy put protection on the back of any large decline in volatility, low vol markets can in fact often present one of the worst times to enter such a strategy. Pete Clarke, global head of equity derivatives strategy at UBS, discussed at the CBOE Risk Management Conference in County Wicklow, Ireland, why investors might do better to wait for markets to be more nervous before buying anything other than low cost tail protection in the current low vol market. He went on to discuss the broader backdrop for global vol markets and the opportunities that they currently present.