Sentences with phrase «maximum implied volatility»

Not exact matches

Since the implied volatility is relatively low at 38 %, this trade has a maximum profit of only 3.3 % if the puts expire worthless, and it only provides a downside hedge of 3.4 % if the puts are assigned.

Since the implied volatility is relatively high at 50 %, this trade has a maximum profit of only 0.9 % if the puts expire worthless, but it provides a downside hedge of 10.1 % if the puts are assigned.