What is tailpes?

Answer 1

Tailpes refers to a type of financial instrument known as a tail risk hedge, which is designed to protect investors from extreme market downturns. These instruments typically become valuable during significant market declines, helping to mitigate losses. Tailpes can include options or other derivatives that capitalize on the volatility and price movements associated with such events. They are particularly relevant for investors seeking to safeguard their portfolios against rare but severe market events.