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Options JiveAnticorrelation: Price and Volatility | Jul 26, 2022
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    Options JiveAnticorrelation: Price and VolatilityJul 26, 2022

    tastytraders often rely on the inverse relationship between price and volatility when constructing their positions. But how strong is this relationship and how strong is the evidence for it? Should we be worried that we are conflating this anticorrelation with a positive correlation between volatility and the size of the price move; moves to the downside tend to be larger after all. Today, Tom and Tony look at the data to set this question to bed and see how meme stocks might differ from typical underlyings.

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