Market Measures - June 14, 2024 - Precious Pairs

The tastylive network

Anton Kulikov and Tony Battista discuss Tom's seasickness on a Mediterranean yacht, before diving into a CBOE-sponsored market measure on pairs trading. They discuss the correlation between gold and silver in strangles and iron condors, assessing diversification benefits versus potential risks. Analyzing 15 years of data, they conclude that such trades offer risk reduction on most days but increase volatility when the underlying assets diverge. They recommend cautious experimentation for advanced traders.