One of the most popular — and controversial — trades in the stock market is showing no signs of slowing.
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One of the market's hottest trades just had its biggest day yet
Traders just made record bets against stock price swings as retail investors get increasingly involved in volatility products.
Volume in a short-volatility ETN just hit a daily record versus a product betting on more price swings.
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An exchange-traded note betting that US stocks will essentially sit still for the next month saw record trading volume of $3.3 billion on Thursday, June 22, according to according to Macro Risk Advisors (MRA)
One of the most vocal opponents of the short-volatility trade has been JPMorgan quant guru Marko Kolanovic. While conditions may seem innocuous at present time, a sharp, unexpected shift in the stock market could result in a painful unwind for investors betting on placidity, says Kolanovic, the firm's global head of macro quantitative and derivatives strategy.
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