Contents Forgive the dissertation-sounding title. We will try to explain this as simply as we can, focusing on the main concepts without going into the weeds of the more detailed areas. Exchange Traded Products (ETPs) is just a term to encompass both Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs) – the difference between … Read more
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
By Manusha Rao You may have noticed that markets sometimes remain calm for weeks and then swing wildly for a few days. That’s volatility in action. It measures how much prices move—and it’s a big deal in trading and investing because it reflects risk. But here’s the catch: estimating volatility isn’t straightforward. A 2% drop … Read more
MEASURING VOLATILITY: TALKING POINTS Volatility is the measurement of price variations over a specified period of time. To measure volatility, the Average True Range (ATR) and Volatility Pro indicators are used. Technical Analysis can bring a significant amount of value to a trader. While no indicator or set of indicators will perfectly predict the future, traders can use historical … 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