Market Measures

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Ways to Reduce 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.

Volatility is an important aspect to think about when we are constructing our portfolios. Traders can adjust their portfolios based on their target risk bearing levels by using different trading strategies and different ways to manage their positions.

For example, delta is an important metric to look at when we are constructing our portfolios. According to our study in short positions on SPY strangles with different deltas, we can see that increased delta will lead to higher returns with higher volatility and risk.

Our study also shows that different management approaches can lead to different returns and volatility levels.

Tune in as Tom and Tony walk through the results and identify the key takeaways.

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