volatility arbitrage

A trading strategy that seeks to capitalize on the differences between the implied volatility of an option and its actual volatility that is realized at a future date. The volatility of an option and of its underlying security, rather than price, is the key measure for trading decisions in which traders buy into low volatility and sell into high volatility.

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Creator

  • zzcgood
  • (Wuhan, China)

  •  (Bronze) 128 points
  • 100% positive feedback
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