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MH+ Ep.03: Patrick chats with Steve Sosnick

The Market Huddle

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The Pain of Volatility

The one thing that causes the most amount of pain is when you take all this long gamma trades, directionally betting higher or lower. And so it's almost like demoralizing, taking positions here, because you're just getting theta to death on the short term. But from a big macro point of view, if all these institutions are under-invested or carrying more cash or more defensive than usual, that's a pain trade too.

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