Recent content by Parra

As a first concept, a high VI, means that there is more fear in the market, therefore, the prices of options will be more expensive motivated by this same uncertainty, so it is logical to be a seller of options. In any case, this VI should be related to the historical or realised volatility, to...

I think it's not that simple, volatility depends on how long the option expires, and whether the option is OTM or ITM, affecting what's called a volatility smile, so it's not an exact mathematical ratio. We know that changes in volatility will be more explosive in ITM options than in OTM...

I would never recommend you to trade right at the beginning of market opening, you should wait a while for prices to consolidate, especially if you are going to trade options. To the opening and beginning of the market the money that approaches is the one of the retail, and the intelligent...