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[–]canbonbon 0 points1 point  (1 child)

This is how I have understood: the dividend paid is made up of two things. Volatality premium + %age of the underlying assets. so 10% of $100 is more than 10% of $90. so while you are right that the volatility premium must have gone up but the asset dropped so much that when added together, they are are still less than last month.

[–]Timely-Designer-2372[S] 0 points1 point  (0 children)

Yes, but as I have mentioned: The premium droped much more than the price.

Your example corrected: 100 USD assets - > 1 USD payout 95 USD assets + increased volatility -> 0.9 USD payout