This blog covers the phenomenon of volatility clustering in financial markets, its causes, and its significance for risk management, asset pricing, and portfolio management.
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
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.
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…
Covered Call import numpy as np import matplotlib.pyplot as plt # Function to calculate the payoff of a covered call def covered_call_payoff(s, strike_price, stock_purchase_price, call_premium): # Stock payoff without the…
Data science is the field of study and practice that involves collecting, processing, analyzing, and deriving valuable insights from data to inform decision-making and solve complex problems. In the realm…
Historical Volatility Historical volatility is a statistical measure that quantifies the extent to which the price of a financial instrument has varied throughout a specified time interval. It is determined…