A Guide on Strategies for Volatility Trading: A Conceptual Overview

 The topic of volatility trading for investors looking for excess profits by shorting derivatives during stable times is covered in this document. The concept of historical and implied volatility is first introduced. The CBOE VIX index, which is based on the S&P 500 and is the premier benchmark index for gauging market expectations of future volatility, is the subject of our second discussion. Because it tends to increase in unfavourable stock market settings and decrease or remain stable in positive ones, the CBOE VIX is often known as the “fear gauge index.” We next go through the most often used options, variance swap, and futures trading methods. The conceptual discussion is supplemented by empirical research.

Author(s) Details:

Luisa Tibiletti,
Department of Management, University of Torino, Corso Unione Sovietica 218 bis, 10134 Torino, Italy.

Gian Marco Mongiovi,
ESG Analyst, Arwin & Partners, Via Mario Pagano 54, 20145, Milan, Italy.

Massimo Giorgini,
Department of Management, University of Torino, Corso Unione Sovietica 218 bis, 10134 Torino, Italy.

Please see the link here: https://stm.bookpi.org/NRAMCS-V6/article/view/7762  

Keywords: Marketplace volatility, CBOE VIX, volatility trading

Leave a Reply

Your email address will not be published.

Previous post Influence of Flexible Alternating Current Transmission System on Transient Stability of Power Systems Using MATLAB CODE and Power World Simulator
Next post The Non-parametric Regression Methods in Sequence Data Study