Becoming a Volatility Trader Outline

Roadmap for Outline

  • Review of Volatility Concepts
  • A New Approach to Trading
  • Example of Options Volatility Trading Portfolio
  • Risk Management and Expected Returns
  • Q&A

Review of Volatility Concepts

  • What are Intrinsic and Extrinsic Value
  • Historical Volatility and Implied Volatility
  • Implied Volatility and IV Rank(Percentile)

A New Approach to Trading

  • Risk Management
  • Less worried about price movements
  • Options are Synthetic Stocks Positions ( Cash Efficiency)

Example of Options Volatility Trading Portfolio

  • Allocation based on VIX
  • Trade as a business ( Insurance Company)
  • Examples

Risk Management and Expected Returns

  • Risk Management on Volatility Trades
  • Strategies Examples
  • Adjusting Expectations