Japan TMT Analyst

Pelham Smithers

Market Intel on Asian Tech with a Japan focus

Pelham Smithers Associates

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

Research is provided by the following:
Pelham Smithers: Macro, consumer electronics, telecoms & pharma
Joel Scheiman: Electronics materials / components
Julie Boote: Autos
Will Nestuk: Capital goods, machinery & transportation equipment parts
Thao Nguyen: eCommerce, internet content, marketing & advertising

Thematic (Sector/Industry)

United states / Thematic (Sector/Industry)

It is said that “markets take the stairs up and the elevator down”. In upward trending markets, such as US stocks for the past several years, volatility goes lower, the longer the uptrend carries on. That has also made implied volatility on stock options low, as the VIX chart shows below.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/028/570/original/VIX%20VOL.PNG?1498215628" class="editor-image img-responsive" data-smartkarma-image-id="28570"></figure>Source: CBOELow implied volatility suggests the cost of buying put options to protect a portfolio against a fall in the market should be low too. Yet, there is a periodic premium to pay and the longer the trend…

It is said that “markets take the stairs up and the elevator down”. In upward trending markets, such as US stocks for the past several years, volatility goes lower, the longer the uptrend carries on. That has also made implied volatility on stock options low, as the VIX chart shows below.Source: CBOELow implied volatility suggests the cost of buying put options to protect a portfolio against a fall in the market should be low too. Yet, there is a periodic premium to pay and the longer the trend…

Portfolio Protection Revisited