- Flow Traders is a market maker and trading firm which hugely benefited from the 2020 volatility.
- Although the company paid a high dividend of €6.5 over the year 2020, the stock price underperformed since the IPO.
- Until last year, the stock traded in line with the volatility index but showed a disconnect this year.
- Compared to recent years, the stock is currently valued at a premium as investors appear to anticipate a significant rise in volatility.
- The likelihood of volatility returning to 2020 levels in the short term is low, meaning the premium is not justified.
For further details see:
Flow Traders Ain't The Goose That Laid The Golden Eggs