Traders often ask what is the edge in trading options. The answer is three words: volatility risk premium. While this is not the only edge in trading options, this is one of the advantages we will discuss today. Contents Let’s dive into what volatility risk premium (VRP) means. Option sellers collect a premium to take … Read more
Introduction Grid trading is a powerful Forex strategy that places buy and sell orders at predefined intervals to profit from market fluctuations. However, traditional grid systems often fail to adapt to changing market conditions, leading to excessive drawdowns during strong trends. Our next-generation Grid EA solves this problem by integrating smart, customizable constraints—including EMA, ADX, RSI, MACD, and Volume … Read more
CORRELATION MASTER : DOUBLE THE PAIRS, HALF THE RISK Smart EA for Negative Correlation & Auto Hedging Correlation Master is an automated Expert Advisor that utilizes the negative correlation strategy between currency pairs. By opening opposite positions on opposing pairs (e.g. EURUSD Buy and USDCHF Sell), this EA aims to maximize profits while minimizing risks. With … Read more
Today, we will look at a completely risk-free options collar trade. Risk-free collars are not synonymous with zero-cost collars. The zero-cost collar just means that you can add an options collar around a stock for zero additional cost. Those are common, but they are not risk-free. The options collar we are discussing is less common, … Read more
A zero-cost collar consists of buying a put option and selling a call option to finance the cost of the put option. When the correct strikes and expiration are chosen, this incurs no extra cost to the investor. The option collar will hedge downside risk during earnings season, which can be volatile, as unexpected results … Read more
By Varun Pothula About Varun:Varun Pothula is a Quantitative Analyst at QuantInsti. He along with Rajib Ranjan Borah and Euan Sinclair has played a key role in curriculum creation of options trading module for EPAT. Varun’s academic credentials include a Master’s in Financial Engineering from WorldQuant University and a Bachelor’s in Mechanical Engineering from Vellore … Read more