Category: Implied Volatility

  • How To Calculate VIX Options Calendar Spreads Margin Requirement

    The Volatility Index (VIX), also widely known as “The Fear Index” has been gaining lot of popularity especially after the recent financial crisis. These days almost every major asset class has its corresponding VIX, and in fact several countries have introduced VIX equivalent for their leading market indices. After several months of trading it personally…

  • Don’t Trade Apple Earnings Without Reading This First

    Apple Inc. (AAPL), the biggest publicly listed company on the planet is about to announce earnings on Apr 24th, after markets are closed. It is estimated that nearly 200+ Hedge funds have AAPL shares in their portfolio. And it is one of the most commonly talked about stock on almost every main stream financial media,…

  • How to Trade Fear

    So you have been watching this “interesting” stock market. One day down, next day up and in the end you don’t seem to find any “wealth effect” in your stock portfolio. And then there is this marvelous VIX, Uncle Ben’s bullish notes about subdued inflation, bullish economic data and you think everything seems to be…

  • How Implied Volatility Can Make Money, A Lot of It

    The most powerful force is an “invisible” one; because you can always prepare for the visible forces but the one that can cause most gain or pain is the one that you can’t see. Implied volatility is one such force when trading financial markets. I introduced Ms Vega as personification for Implied Volatility. Depending upon…