What Next? Events of last week in the financial markets reminded us that markets do correct from time to time. We are in the middle of one now leaving investors wondering if they are gazing at an abyss. It is during these times that technical analysis comes to aid in estimating reasonable levels at which […]
Category Archives: Technical Analysis
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What is Variance Risk Premium Variance risk premium (VRP) is defined as the difference between Implied volatility and historic volatility measured over a defined period in the past. Capturing this risk premium can be done through options overwriting (selling calls or call spreads) or under writing (selling puts or put spreads). Implied volatility usually exceeds […]