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I think it is important quants understand what traders are talking about. With that, what does it mean:

  • "vol is well bid"
  • "fade the trade"

?

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    $\begingroup$ "well bid" = lots of bidders i.e. lots of buyers, pushing price up. "fade the trade" = do the opposite, e.g. "I always fade Warren Buffet's trades" = I always do the opposite, sell what he buys and buy what he sells. $\endgroup$
    – nbbo2
    Dec 16, 2021 at 12:49

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"vol is well bid" - lots of buyers options with high vega (price sensitivity to implied volatility), such as long dated options

"fade the trade" - means the person doesn't believe it's a good trade to get in on. Maybe a temporary spike due to some institutional buying.

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    $\begingroup$ I'd say 'vol is well bid' could refer to short or long-dated options, i.e. does not imply only lots of buyers of vega (could also be gamma buyers). And on fade, it implies - as @noob2 said - take the other side, not just "doesn't believe it's a good trade" $\endgroup$
    – user42108
    Dec 17, 2021 at 14:28

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