Options Vanna is a second-order derivative of the option price with respect to changes in the underlying asset’s implied volatility. It measures the sensitivity of the option’s delta to changes in the underlying asset’s implied volatility. • In other words, Options …
Multi Factor investing is an investment strategy that involves targeting specific characteristics or “factors” in stocks or other assets that are believed to drive their returns. Factors can include characteristics such as value, momentum, size, quality, volatility, and dividend yield. …
Realized volatility (RV) in options refers to the actual volatility of an underlying asset’s price movement over a specific period of time, as opposed to implied volatility (IV), which is the market’s expectation of the future volatility of the underlying asset. …
Volatility surface is a three-dimensional plot that shows the implied volatility of a financial asset, such as an option or a future, against its strike price and time to expiration. It is a key tool used by options traders and market …
Unlevered Free Cash Flow Unlevered free cash flow (UFCF) is a financial metric that measures a company’s ability to generate cash flow from its operations, after accounting for its capital expenditures but before accounting for any debt or interest payments. UFCF …
Peter Lynch was born on January 19, 1944, in Newton, Massachusetts. He is best known for his successful career as a portfolio manager at Fidelity Investments. He joined the company in 1966 as an intern and worked his way up to …
Terry Smith was born on May 30, 1953, in a small town in Essex, England. He is a well-known British fund manager and entrepreneur. He attended Alleyn’s School in Dulwich, London, and later studied history at University College Cardiff. Terry Smith …
John Clifton Bogle, commonly known as Jack Bogle, was an American investor and businessman who founded the Vanguard Group and was credited with revolutionizing the mutual fund industry. He was born on May 8, 1929, in Verona, New Jersey, and passed …
Ben Stein is an American lawyer, actor, and writer of various best-selling books on finance and related fields. Initially, Ben Stein started his career as a political and economic commentator and then transitioned into acting professionally. Ben Stein rose to …
Volatility Skew is simply the comparison of volatility between ATM, ITM and OTM options of a particular contract. Pictorially, it can be represented as below: As can be seen above, ATM options trade at least volatility compared to OTM options. Generally, …