Market Measures

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The Importance of Controlling Volatility

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Like profitability, portfolio volatility is crucial for traders. How can we take control of this volatility? There are two ways to control volatility:

  1. Choosing the right strategy
  2. Managing positions properly

In this study, we compared position volatility by looking at Strangles with varying deltas. We then compared the portfolio volatility by using different management techniques, such as rolling and managing earlier.

Watch how Tom and Tony interpret the relationship between volatility and options strategies.

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