Reverse Convertibles: In Favor of the Issuer, Not the Buyer [View article]
user172202 Nothing wrong or inconsistent here The first point only stated that the SD of individual stocks is much higher than the market and the value of a put is partly based on volatility. The second and independent point is that the combination of the high volatility and negative skewness create the potential for large losses. Something investors seem to miss.
Reverse Convertibles: In Favor of the Issuer, Not the Buyer [View article]
Nothing wrong or inconsistent here
The first point only stated that the SD of individual stocks is much higher than the market and the value of a put is partly based on volatility.
The second and independent point is that the combination of the high volatility and negative skewness create the potential for large losses. Something investors seem to miss.