What you really have at risk in a specific trade is often a function of whether you are long or short, and how quickly you think you can get out of a bad trade. For example, a long option has a fixed risk of the premium or purchase price. However, a short option has theoretically … Continued
As a technical indicator the VIX is arguably the best gauge of overall market risk and trader sentiment available to the investing public. In this article we introduce you to the VIX to help you understand what it is and how to trade it.
Implied volatility can be used to adjust your risk control and trigger trades. The concept of implied volatility is simple to understand but hard to predict. In this article we talk about how IV changes prices and why this matters to investors.
Watching the Oil VIX (OVX) can help you identify potential reversal points in the price of oil. The Oil VIX is positively correlated with the price of oil.