Volatility Understanding Beta Volatility, Risk Management What Beta Measures: The Basics At its most basic, beta is a measure of how an asset’s returns correlate to the market. If a stock has a beta of 1.0, it means it tends to move one-for-one with the… Implied Volatility and Market Expectations Volatility Basic Points About Implied Volatility At its core, implied volatility tells us the percentage range the options market is pricing in as a one standard deviation move, which has a roughly 68 percen… FOMO and Skew Breakdown Skew, Volatility What Do We Mean By “Skew”? In options terms, skew measures the difference in implied volatility between out-of-the-money (OTM) puts and calls. One common way to quantify it is: Skew = (25-delta… Smart Premium Selling With Q-Score Q-Score, Volatility Understanding the Core Metrics A. Implied Volatility (IV) Implied Volatility reflects what the options market expects in terms of future price swings. Higher IV means options are more expensive… Understanding Spot Volatility Correlation Volatility What Is Spot Volatility? First, “spot” simply refers to the current price of the underlying asset — for example, the current level of the S&P 500 index, the Nasdaq, Bitcoin, or any other trada… Stocks Up, Volatility Up: Not Always Bearish Volatility Mechanics Behind the Anomaly Let’s start with the simplest reason: sometimes, “stocks up, vol up” is just mechanical noise — a byproduct of how index options are priced. Index volatility is der… Understanding and Trading VIX ETPs Volatility How Do VIX ETPs Work? Most VIX ETPs gain their exposure through VIX futures, not the spot VIX index. The two most common forms are: Long VIX ETPs: These rise when VIX futures increase (e.g., V… Profiting When RV Exceeds IV Volatility IV vs. RV: The Key Relationship Let’s start by breaking down the terms: Implied Volatility (IV) is the market’s forecast of future volatility, priced into the option’s premium. Realized Vo… Volatility vs. Forward Rates Volatility What Are Forward Rates? In the fixed income world, forward rates represent the market’s expectation of future interest rates. These are not observed directly but are derived from the yield curve…
