One of the most important risk factors when trading financial assets and their derivatives is the actual and historical volatility of the underlying asset that impacts the implied volatility used to ...
Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...
The volatility term structure, which plots implied volatility against different expiration dates for options on the same underlying asset, can reveal when potential catalysts are anticipated by ...
The S&P 500 options market is currently reflecting heightened short-term anxiety, as seen through a rare condition known as backwardation in the implied volatility term structure. In this state, ...
BTC's options expiring on Oct 5 trade at higher implied volatility (IV) compared to Oct. 25 options. The so-called IV kink points to a unusually volatile weekend. Traders seem to bracing for price ...
Treasury options traders began pricing the 2-year yield risk to the downside and 10 and 30-year to the upside beginning in July With both intraday and historical options values available, traders can ...
The spread between bitcoin's BVIV and the S&P 500's VIX is widening, indicating higher expected volatility for BTC. Implied volatility reflects demand for options and hedging, with crypto markets ...
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