Volatility question

Discussion in 'Options' started by wburt1948, Jul 6, 2020.

  1. While this sounds good, I have yet to grasp all the terminology and implications. I'll read up more on 'mean reversion' and how one becomes 'short volatility'.
     
    #11     Jul 6, 2020
  2. taowave

    taowave

    If you dont know what Short Volatility is,do not pass GO..
     
    #12     Jul 6, 2020
    Atikon likes this.
  3. When one sells calls or puts - 'being short'. Understand short and long. Volatility is relative, long or short is not relative. You either are or you are not either long or short.
     
    #13     Jul 6, 2020
  4. Atikon

    Atikon

    Just go to any option calculator, set your target price for the short leg of ythe IC you want to buy, then increase the IV. You'll understand what we are saying
     
    #14     Jul 6, 2020