Deep | The Art of Asymmetry

Expanding the toolkit

Asymmetry is probably one of the most overused terms on X.

Seeing many set-ups that purport to be asymmetric in nature: most likely in the context of being long a common stock and generally lacking a defined timeframe in addition to having wildly overstated right tail distributions

What truly defines asymmetry in my mind are two things: (i) a very tight and quantifiable downside and (ii) an appreciation for probabilistic outcomes and time decay

To illustrate this I will give you two perhaps counterintuitive examples involving (i) bonds and (ii) being short (which most would probably associate with downside asymmetry)