Investment in equity volatility-selling strategies has accelerated in recent years. ETF assets in this space have grown from $15 billion to more than $80 billion since early 2022, and bank QIS teams continue to launch strategies that systematically sell volatility.
Adrien Géliot, CEO of Premialab, recently spoke to Risk.net and highlighted that as much as $92 billion may now be allocated to short-volatility strategies across roughly 460 QIS programs. These programs span option writing, variance swap selling, and a range of income-focused volatility-harvesting approaches, demonstrating Premialab’s deep insights into market trends and risk analytics.
The influx of capital has sparked debate across the market. Some experts suggest the volatility risk premium has diminished, urging caution, while others believe the premium continues to present opportunities.
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