​Amundi’s Hermitte Open To Increase Vstoxx Strategies, Lauds Higher Liquidity

Increased liquidity in the Vstoxx has made tactical volatility trades on the underlying increasingly attractive, according to Eric Hermitte, co-head of volatility and convertible bonds at Amundi in Paris. He pointed to flow in the market in put ratios prior to the European Central Bank’s announcement of quantitative easing as an example of an effective strategy in the Vstoxx as it holds less risk and was an effective way to play normalisation in volatility at the time.