Short-dated options have increased in popularity since 2020, giving the fund an opportunity to capture a more pure volatility risk premium—a clear enhancement for funds like this one.
The fund sells call options to profit from the volatility risk premium, which buffers the downside and controls volatility. These contracts span various strike prices and maturities and are sold ...
Following the event, the news is priced directly into the shares, and the "uncertainty premium" drops out of the option price. The threat of a volatility ... The risk of a broader VIX downturn ...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all ...
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all ...
While volatility represents short-term fluctuations in stock prices, it is not synonymous with risk. Learning to navigate through periods of volatility can turn market unpredictability into a long ...