Understanding Open Interest and Max Pain in Options Trading
Open Interest (OI) and Max Pain, their use in practical trading, and how they help identify market sentiment and potential price movements.
Dynamic Delta Hedging vs. Static Delta Hedging
Understanding of Static and Dynamic delta hedging with Advantages, Disadvantages and Applications.
Trinomial Model
The Trinomial model is an extension of the Binomial options pricing model and is commonly used to value options.
Volatility Clustering
This blog covers the phenomenon of volatility clustering in financial markets, its causes, and its significance for risk management, asset pricing, and portfolio management.
Volatility Dispersion
In this blog, I explore the concept of volatility dispersion in detail. We'll cover its key elements, various types, advantages, and limitations, providing a comprehensive understanding of this trading strategy. Additionally, visualizations will be included to illustrate the concepts and help clarify how volatility dispersion works in practice.
Second Order Greeks – Veta and Vomma
The critical roles of Veta and Vomma in options trading. These second-order Greeks offer profound insights into how option Vega changes with time and volatility
Second Order Greeks – Charm and Vanna
Explore the crucial roles of Charm and Vanna in options trading. These second-order Greeks provide deep insights into option delta changes with time and volatility.
Volatility Smile
The volatility smile is a graphical representation that emerges when plotting the implied volatility against the strike prices of options sharing the same underlying asset and expiration date. As the…
Volatility Smirk
A volatility smirk, a variation of the more common volatility smile, is depicted by plotting the strike price and implied volatility of options for a specific underlying asset, such as…
Mastering Hedging Greeks: Strategies for Options Success
Explore options hedging basics in this guide, where you'll learn about delta, vega, and gamma. Whether you're new or experienced, the article simplifies the intricacies of hedging Greeks in options, making it easy for everyone to understand and apply in the world of trading.