Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
CM Strategy

Optionalysis: Capital Mind Hangout – Trading Volatility With Options

trading volatility with vashishtha iyer

All that talk on Options and Volatility, in a Video?

Recently we’ve had some solid path breaking arguments on options and volatility and how, even in times of great volatility, you get different ways to participate using options that might actually help control or take advantage of the greed/fear. 

[level-capmind-pro]

We had an impromptu Google Hangout with Vashistha Iyer (@vy3r on slack). Here is the complete video.

What we spoke of:

1. How high IVs – of 30+ in the Nifty actually provided for large moves – some so large that they overstated the move in the Nifty most times.

2. The big outlier was the 2009 move- where there was a 2SD move in the Nifty. But short of that, most large moves seem to have been “caught” by options.

3. We used Snap to overlay charts and calculators to work through SD ranges. The current IV is so low it makes little sense to WRITE options, but you can see how IV ranges move over a longer term and how the current IV isn’t exactly normal.

And much more in the Video! Thanks to Vashistha for the inputs (and the Ukulele lead-in too!).

divider

Volaitily trading, hangout with iyer, Options, Derivatives

Click on the image to watch the tutorial in Capital Mind’s Private Video Channel.

Or You can just click this link: Trading Volatility with Options: Vashistha Iyer and Deepak Shenoy

divider

If any questions or comments or feedback

You can directly ask in the comments section below the video or just send us a mail to premium@capitalmind.in.

We will get back to you in a short time period.

Thank you!!

You can like our Facebook page or Follow us on Twitter or Add us to your circles on Google+.

divider

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. 

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

Next Gen Financial Analytics

[/level-capmind-pro]