Volatility arbitrage is a trading strategy that aims to profit by exploiting differences between forecasted and implied ...
Calendar spreads are a versatile options strategy that allows traders to capitalize on time decay and changes in implied volatility. This strategy involves selling a short-term option while ...
If you ask most investors how risky corporate bonds are compared to government bonds, or to compare emerging market stocks vs. domestic stocks, you’ll find that most investors have a sense of the ...
The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...
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, ...
“A simple mean reversion model can provide effective signals for option strategies even when trading costs are included,” she says. In a study released on Monday, Commerzbank shows that prior to the ...