Protecting against implied volatility(long straddle)

Why protect against Implied volatility? In February 2018 Goldman Sachs reportedly made a whopping $200 million on a single day trading volatility. There are also instances when traders lost millions of dollars on a single day. While implied Volatility may look appealing to someone who is just starting out, it comes with its own set …

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Volatility surface chart (it’s impact on the profitability of option trades)

Implied Volatility Surface for AAPL

Volatility surface is the plot that can help you determine the best combination of the strike and the expiry date to maximize the profits on an Options Trade. Volatility Volatility is basically the fluctuation in the price of a product or a derivative. The more is the swing, the more is the volatility. There are …

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