Volatility, IV & HV
by PRASHANT SHAH -
Volatility is a very important and inevitable part of the market for traders and investors. I would say the success of a trader depends on how he handles volatility. Let’s discuss volatility. Volatility A simple explanation of volatility is that it is a fluctuation in the market. See the below image. There is an uptrend, ... Read more
Volatility Skew
by PRASHANT SHAH -
There is an interesting concept called Volatility smile. Volatility Smile We have discussed the fact that all option strike prices will have different IVs. The IV of an index or stock is derived from the underlying IVs of the put and call options of various strike prices of the underlying stock or index. High IV ... Read more
Volatility, IV & HV
by PRASHANT SHAH -
Volatility is a very important and inevitable part of the market for traders and investors. I would say the success of a trader depends on how he handles volatility. Let’s discuss volatility. Volatility A simple explanation of volatility is that it is a fluctuation in the market. See the below image. There is an uptrend, ... Read more
Volatility Skew
by PRASHANT SHAH -
There is an interesting concept called Volatility smile. Volatility Smile We have discussed the fact that all option strike prices will have different IVs. The IV of an index or stock is derived from the underlying IVs of the put and call options of various strike prices of the underlying stock or index. High IV ... Read more
