Volatility as an Asset Class

The insurance trade, the carry trap, the convexity paradox, and why the AI era makes this the most structurally interesting allocation question in a generation.

Most investors have a volatility number in their portfolio. Almost none of them have thought about which side of it they are on. There is a buyer and a seller in every option contract. One of them is paying a structural premium that has been positive for decades. The other is collecting it. The distinction sounds technical. The return difference is not.