By Lawrence G. McMillan
There is a seasonality to volatility that has persisted over the years. Not every year is the same, of course, but the general pattern is similar. This can sometimes be useful in helping one determine whether to expect increasing or decreasing volatility during the life of positions that are being established.
The chart in Figure 1 is a composite of $VXO (the original $VIX) dating back to 1989. A composite chart is constructed by...
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