Category: Volatility

The Treynor ratio is a measurement of the returns earned in excess of what could’ve been earned on an investment that has no diversifiable risk per unit (like U.S. Bonds)…

Why do the biggest rallies happen in bear markets? The biggest stock market rallies happen in bear markets. We almost never see a 5% rally in the stock indexes in…

The UVXY is a volatility tracking exchange traded fund. This ETF started trading in October of 2011 and it tracks 1.5 times the performance of the S&P 500 VIX short-term…

 IV crush stands for implied volatility crush and is a description of what happens to options vega premium when it drops dramatically out of the pricing model of an option…

Implied volatility or IV crush are descriptions for when an options vega premium dropped dramatically out of its pricing. This usually happens after a major event has passed for the…

In Black–Scholes option pricing model, the implied volatility or ‘IV’ of an option contract is the cost embedded in the option of the volatility of the underlying instrument that it…

While many traders love volatility and need it to trade in their timeframe it creates as many risks as it does opportunities. If you are on the right side of…

This is a Guest Post by Dr. Arnout ter Schure on Twitter @intell_invest. What is the VIX/VXV ratio telling us about the state of the stock markets? The VIX:VXV ratio has been…

This is a Guest Post by AK of Fallible AK has been an analyst at long/short equity investment firms, global macro funds, and corporate economics departments. He co-founded Macro Ops…

The biggest key to profitable trading that few people think about is the management of volatility. Setting a stop loss at a level that keeps you in a winning trade…