Volatility trading

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.
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.
Trader technique using volatility and CBOE VIX futures to pinpoint trade execution in long butterfly S&P 500 options spread.
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.
Understanding implied-to-realized volatility spreads to net dividends
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
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