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Trading Implied Volatility - An Introduction (Volcube Advanced Options Trading Guides, #4)
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Trading Implied Volatility - An Introduction (Volcube Advanced Options Trading Guides, #4)
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Trading Implied Volatility - An Introduction (Volcube Advanced Options Trading Guides, #4)
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Trading Implied Volatility - An Introduction (Volcube Advanced Options Trading Guides, #4)

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About this ebook

What is implied volatility? How is it traded? What implied volatility trading strategies are commonly used in the derivatives markets?

These questions and more are examined in this concise introduction to trading implied volatility. This is the 4th volume of the popular Volcube Advanced Options Trading Guides series.

Part I introduces implied volatility. It offers definitions and useful interpretations for implied volatility numbers. Factors influencing implied volatility are discussed. Typical means of trading implied volatility are explained, including options, volatility indices (such as the VIX and related derivatives) and variance swaps.

Part II breaks down the most common implied volatility trading strategies into their main themes. This includes implied volatility trading against historicals, calendar spreads, skew trades, cross-product spreads, volatility arbitrage and compound strategies such as the Dispersion trade. Each strategy is discussed in detail, explaining its aims and major risk factors. This overview should leave the reader well informed as to how implied volatility trading strategies are typically constructed and risk managed.

Both Part I and Part II include a set of exercises with full solutions, to test the reader's understanding of the points raised.

The Volcube Advanced Options Trading Guides are aimed at readers with a basic understanding of simple option terminology who are looking to broaden and deepen their knowledge base. The texts rely on plain, well-written English to explain ideas intuitively and the use of mathematics is kept to a minimum.

LanguageEnglish
Release dateJan 27, 2014
ISBN9781501406706
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Trading Implied Volatility - An Introduction (Volcube Advanced Options Trading Guides, #4)

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