If you hold short premium positions in SPY and TLT thinking you are diversified because they move in opposite directions, Julia Spina has a piece of data that should make you reconsider. Their price correlation is near zero over the long term. Their implied volatility correlation is consistently high and consistently positive. During a big market vol event both implied volatilities spike together regardless of which direction the price moves. Your Vega exposure is not hedged at all. Traditional price diversification just does not work the same way for short premium portfolios. The Greeks are the better tool for managing this risk. And the most reliable protection of all is simply limiting how much capital you deploy in short premium positions overall, with 50 percent as a general ceiling. 📊 tastylive: tastylive.com 📰 Get Tom's pre-market analysis every morning: tastylive.com/newsletters 📘 FREE Options Strategy Guide: tinyurl.com/bp9ms763 📱 Follow ...