Binary Option Volatility Skew
How To Survive A Greek Fire – We are trapped in a binary market governed by the flip of a macroeconomic Look for tail risk hedges in assets that exhibit low implied volatility relative to realized and cheap skew to the upside and downside. You can use this market schizophrenia
Multiple AAPL Options Trading Ideas For Varying Viewpoints – Up or Down, I don’t care. Just want to take advantage of the volatility skew When there is a binary event such as earnings report, front dated options gets inflated relative to back month dated contracts. This is reflected in the Implied volatility(IV
To gain an edge in determining a directional view for trading this pair, the options market can help by looking at volatility smiles and risk reversals the Swiss National Bank and correlates with the skew in the option market toward euro calls.
Binary option Wikipedia, the free encyclopedia – In finance, a binary option is a type of option in which the payoff can take only two possible outcomes, either some fixed monetary amount (or a precise predefined
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