- Flow Traders is a market maker and trading firm which hugely benefited from the 2020 volatility.
- However, elevated levels of volatility do not necessarily translate into higher earnings.
- Unless volatility spikes, earnings are not significantly affected.
- In the meantime management is diligently growing the business to increase earnings and consequently the dividend.
- When the stock will trade below €27 or if the VIX index will spike materially above the 37-threshold, it may present an interesting opportunity.
For further details see:
Flow Traders: Focus On The Dividend, Not The Volatility