SignalPlus Vol Commentary
Yesterday (December 19th), Richmond Fed President Barkin, who will have a voting right in next year’s FOMC, made a statement indicating that the Federal Reserve has made good progress in…
Category:
Advanced Options Learning
15 Articles
15
Demystifying Volatility Term Structure in Options Trading
Introduction Volatility term structure describes how implied volatility levels vary across different expiration dates for options on the same underlying asset. Understanding the dynamics of volatility term structures provides critical insights…
Demystifying Volatility Skew in Options Trading
Introduction Volatility skew is an important options market anomaly that all traders should understand. It describes the difference in implied volatility levels between out-of-the-money (OTM) put and call options with the…
A Deep Dive into Implied and Realized Volatility
Volatility represents a foundational option and risk metric that measures price fluctuation over time. While volatility may seem like a simple statistic, there are intricacies and advanced modeling techniques that…
Delta Hedging
Scenarios Delta hedging can ensure that the option price is not affected by changes in the underlying asset price. Description Delta is a sensitivity indicator of options, representing the degree of…