Tag: VolatilityIndex

Introduction: Market volatility can seem like a daunting phenomenon for investors, stirring up the waters in which they navigate. Its ebbs and flows often dictate the attractiveness of different strike prices for options traders. Understanding volatility's influence on strike price selection is key to making informed and strategic investment decisions. Defining Market Volatility: Volatility represents the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. High volatility indicates a high degree of risk due to rapid and unpredictable price swings, while low...