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 underlyi... Read more
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... Read more
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 volatility you can make a lot of... Read more
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 dropping from a... Read more
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 and is t... Read more
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 but stops you out of a los... Read more
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 and is t... Read more
Risk and volatility are two very different concepts. Volatility is the up and down nature of markets. If your trading strategy expects the markets to move up and down, as markets often do, t... Read more
A few key points to remember when analyzing market movements: Uncertainty causes much of the volatility, as neither buyers, sellers, or holders have the majority conviction to contro... Read more
