A trading strategy that seeks to capitalize on the differences between the implied volatility of an option and its actual volatility that is realized at a future date. The volatility of an option and of its underlying security, rather than price, is the key measure for trading decisions in which traders buy into low volatility and sell into high volatility.
Related information about volatility arbitrage:
- Volatility arbitrage - Wikipedia, the free encyclopedia
In finance, volatility arbitrage (or vol arb) is a type of statistical arbitrage that is implemented by trading a delta neutral portfolio of an option and its underlier.
- Volatility Arbitrage Definition | Investopedia
Trading strategies that attempt to exploit differences between the forecasted future volatility of an asset and the implied volatility of options based on that asset .
- Volatility Arbitrage: The non-correlated alternative - Incisive Media
how volatility arbitrage makes money for its investors – come hell or ... Volatility arbitrage is not just about switching on the machine and sitting back – a diligent ...
- Inside Volatility Arbitrage : The Secrets of Skewness: Alireza ...
"...ideal for academics and practitioners who want to focus on volatility modeling. . . All of this makes the book rich and valuable. . . Go and get it!" (Wilmott ...
- Paul Wilmott's Blog: Volatility arbitrage
Jun 27, 2006 ... I continue to be staggered by the depth and detail of some people's understanding of complicated quant models while these same people have ...
- Volatility Arbitrage | SurlyTrader
Mar 28, 2012 ... There is a broad misconception that options have a cost. This perception is derived from the fact that put buyers are buying downside protection ...
- Volatility Arbitrage | Skills | LinkedIn
In finance, volatility arbitrage (or vol arb) is a type of statistical arbitrage that is implemented by trading a delta neutral portfolio of an option and its underlier.
- Volatility Arbitrage with Options
Oct 13, 2010 ... Presentation about Volatility Arbitrage Techniques using Options at the London Traders & Investors Club.