The investment portfolios span from conservative low volatility to aggressive
high volatility market products.
If a market which typically moves 17 points in a day has only moved 8 points in
low volatility market, then a binary option with a strike price 15 points below the market price has a higher probability of staying in the money until expiration.
The resulting unwinding of positions taken in the 10 - year bond bull market resulted in the highest
volatility the market saw in 30 years.
Traders are finding that day - trading can be emotionally and physically draining and long - term investing has become difficult in the current high
volatility market trading... read more
For example, some traders tag the timeframe the trade was taken on, whether it was counter-trend or with the trend, if it was during high or low
volatility markets etc..
This can be a particularly effective strategy in flat / low -
volatility markets.
They're just as applicable in low -
volatility markets as they are in the higher volatility markets with big swings.
«After 18 months of low -
volatility markets, things became much more volatile in the middle of January, starting with a 10 percent slide within just weeks.
In high -
volatility markets, you may want to consider going as high as 75 %.
Consider setting this parameter to a maximum implied volatility of 50 % in low -
volatility markets.
Monday, May 8, 2017 — After the results of the French election were announced yesterday, this was a notable day in the options and
volatility markets — The CBOE Volatility Index ® (VIX ®) fell 0.80 points and closed at 9.77 (it lowest daily close since December 1993); Bloomberg's estimate of 30 - trading day historic volatility for the -LSB-...]
The volatility market has been a bit jumpy like we are bracing for an unforeseen spike.
Anecdotally, broad knowledge about the risk of systematic selling kept many investors fearful and waiting on the sidelines (both in equity and
volatility markets).
Simply put, a market experiencing a high level of volatility will have a higher ATR, and a low
volatility market will have a lower ATR.
I am aware that the implied volatility is
the volatility the market expects in the future.
Tale of Two Volatilities, Part 2 Download PDF February Volatility If 2017 was «the best of times,» then February 2018 was «the worst of times» — at least in
the volatility markets.
Canadian Bonds and mortgages further reduced the volatility of the portfolio and preserved capital in
these volatility market.
As an example of
the volatility the markets experienced, during the last trading day of the fund - flows week the Dow reversed a 500 - point intraday loss to finish up over 200 points.
He even goes on to say that because of the currently low
volatility the market can be seen as less risky, while the data on volatility - indexes clearly indicates, that they can snap back very quickly, as stock - markets correct / fall.