TY - JOUR T1 - Practical Applications of Still Not Cheap: <em>Portfolio Protection in Calm Markets</em> JF - Practical Applications SP - 1 LP - 4 DO - 10.3905/pa.2016.3.3.135 VL - 3 IS - 3 AU - Roni Israelov AU - Lars N. Nielsen A2 - Mack, Barbara J. Y1 - 2016/01/31 UR - https://pm-research.com/content/3/3/1.3.abstract N2 - Still Not Cheap: Portfolio Protection in Calm Markets Roni Israelov Lars N Nielsen Put options are often seen by investors as a means of buying protection against dramatic stock market moves that may take place in the future. In calm markets, options prices tend to be steady, and they are touted as an inexpensive way to obtain portfolio insurance, while also providing exposure to long volatility at a time when volatility may be expected to increase.But are put options really economical in calm markets? Will they meet expectations in the future? Roni Israelov and Lars Nielsen of AQR Capital Management discuss these questions in Still Not Cheap: Portfolio Protection in Calm Markets , published in the Summer 2015 issue of The Journal of Portfolio Management . ER -