Understanding Market Regimes: A Guide to Navigating Stock Market Cycles
Market regimes—periods with distinct patterns like bullish growth or high volatility—significantly shape investment outcomes.
Importance of Checking for Normal Distribution in Time Series Analysis
Importance of Checking for Normal Distribution in Time Series Analysis.
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.
Trinomial Model
The Trinomial model is an extension of the Binomial options pricing model and is commonly used to value options.
Numerical Methods in Finance
Numerical methods and their uses in finance.
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…