Category Archive : Option Trading

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Impact of Volatility Smiles on Option Pricing: Lognormal and Implied Distributions

Option Trading  |  

Risk Management

Impact of Volatility Smiles on Option Pricing: Lognormal and Implied Distributions

Volatility smiles and skews are fundamental to understanding how markets price options. They reveal how implied volatility (IV) varies across strike prices

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Credit Risk and Exposure in Options: A Buyer-Seller Perspective

Option Trading  |  

Risk Management

Credit Risk and Exposure in Options: A Buyer-Seller Perspective

Know credit risk and exposure in options trading from a buyer-seller perspective, focusing on key factors affecting risk and decision-making.

Updated on

Understanding the Bear Spread Strategy in Options Trading

Option Trading  |  

Risk Management

Understanding the Bear Spread Strategy in Options Trading

Learn about the bear spread strategy in options trading, how it works, its advantages, and when to use it to profit from declining markets.

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