What the Dispersion Trade Unwind Could Look Like

This morning I had my favorite phone yet with my buddy

Le Shrub

to catch up on the market where I began with a recap of what the dispersion trade and its potential unwind could look like based on a conversation I had with an old buddy from the derivatives world last night. I will recap the idea here, along with a clarification where I very clearly misspoke… word to the wise: don’t talk derivatives when bar crawling, especially if, like me, you are not a greeks bro. With that out of the way…