Volatility trading

Inflation, Treasury Volatility, And Growth Stocks At Risk

Garrett DeSimone, PhD

June 4, 2021

Anxieties regarding longer-term inflation have entered the spotlight. The Fed’s easy-money policies and government stimulus spending had juiced growth and momentum into an epic bull run over the last year. However, these equity factors now face substantial risks from bond market volatility.

Is The Straddle Past Prime For Micron Technology?

Garrett DeSimone, PhD

January 6, 2021

An analysis on Micron Technology (MU) earnings shows that short, dated straddles were highly profitable up until Q4 2019, after which these trades started experiencing significant losses. This is due to the realized underlying stock return post-earnings falling short of the market expectations.

Using VIX Futures to Pinpoint Butterfly Option Spread Trade Entry

Mark Fenton

Futures Magazine

August 16, 2019

Trader technique using volatility and CBOE VIX futures to pinpoint trade execution in long butterfly S&P 500 options spread.

Implied vs. Realized Volatility & the VIX

Yesenia Duran

November 11, 2019

Volatility trading is the term used to describe trading the velocity of movement in price of an underlying instrument rather than the direction of price. For example, you could trade the value of an equity index, but volatility trading typically means trading the expected velocity of movement.

Stock market trends and the volatility premium

Marco Erling

October 31, 2011

Understanding implied-to-realized volatility spreads to net dividends

Using the VIX to time markets

Billy Williams

February 28, 2011

Markets are a measure of fear and greed. So, while experts may say it’s impossible, the fear gauge — or VIX — is a tool that can help you time markets successfully

Selling options on gold to profit from a bad economy

James Cordier

Michael Gross

November 30, 2010

A bad economy can hurt. If you know the right option trading strategies, though, you can dull the pain. Here, we see how selling options on gold can help