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.
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.
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 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…
Diversifying with Options: A Tactical Guide to Trading Strategies Part 1
A comprehensive post on various option strategies, and their applications in risk management, income generation, speculation, and flexibility. We delved into detailed payoff graphs, exploring max profit, loss, and breakeven points.
Data Science for Financial Markets
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…