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1answer
37 views

Inverse Relationship between Volatility and Beta

From P78 in ETF for Dummies, 2nd Ed, by Russell Wild : Beta’s usefulness is greater for individual stocks than it is for ETFs, but nonetheless it can be helpful, especially when gauging the ...
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2answers
70 views

Why call option price increases with higher implied volatility

As per the BS model the value of a call option is directly proportional to the implied volatility. Without getting into the derivation of the BS equation, is it possible to intuitively understand why ...
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1answer
30 views

Options price vs implied volatility - who drives who?

In this article we have: In contrast, IV is derived from an option’s price and shows what the market “implies” about the stock’s volatility in the future. Implied volatility is one of six inputs ...
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1answer
75 views

Reasons behind a large price movement of a penny stock without any recent news releases?

Sometimes I see penny stocks on the Yahoo! Finance page move by about 100% in a single day. For example, this stock shows a 91% gain on 10-Jan-2014. By browsing the news reports, I cannot see ...
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1answer
190 views

Why do more floating shares mean less volatility for the stock?

In the article Investopedia explains 'Floating Stock', it states: The more shares of floating stock are available, the less volatile a company's stock price is likely to be, and vice versa I ...
2
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1answer
112 views

How is the price of VXX determined?

I'm trying to understand how VXX works (the prospectus on Barclay's Ipath). It says that it has a rolling position in futures (1 month and 2 month). Does that mean that it buys and sells contracts ...
5
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1answer
2k views

What does it mean to long convexity of options?

In this Bloomberg video, Curnett talks about volatility and the convexity of options. Specifically, he says; "The spread between the VIX sitting there at 20 for a period of time and this realized ...
2
votes
1answer
235 views

Why did Apple instantly become the most volatile stock in the US?

I fully understand that it went up quickly by a lot, and have no problem with the recent drop. But why did it seem to instantly become so volatile? It seems like every day it's up or down 2% or ...
0
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1answer
403 views

How to see an option chain's implied volatility skew

Are there any inexpensive tools, web-sites or services you know of where one can see: a) current implied volatility skew for an option chain b) historic implied volatility skew Thanks
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2answers
272 views

What is volatility drag?

Given a leverage portfolio, what does the term volatility drag mean? And how does it affect the value of the portfolio?
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4answers
160 views

Is it possible to quantify the probability of sudden big movements for a high-volume stock?

As an example: Over this past weekend, from Friday close to Monday open, Netflix (NFLX) dropped about 36% in stock price. Going back to July, Netflix was trading near $300, and now it is at about ...
2
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1answer
846 views

What is the UK equivalent of the VIX volatility index?

The VIX is a measurement of volatility in US markets. What about UK markets?
1
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1answer
73 views

What to make of historical stock market volatility?

I looked on Google Finance today at the DJIA, and kept backing up the time window until I saw the whole display they had, from 1971 until today (Oct 2011). It seemed to me that the volatility--the ...
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7answers
976 views

How to make money from a downward European market?

The trader Alessio Rastani speaks in a BBC interview about the development of the Euro zone and his predictions are quite severe. He predicts a crash within the next 12 months but is also telling ...
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2answers
220 views

Why is silver so volatile compared to the S&P 500?

As an example, silver took a 9.4% hit on 9/22/2011, which was a bad market day -- the Dow dropped over 3.5%. The conventional wisdom is that precious metals like silver are a hedge against a falling ...
3
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2answers
606 views

how does one see the CBOE VIX index on Google Finance?

How does one see the CBOE VIX index on Google Finance? What is a symbol I can use?
4
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1answer
70 views

How do I research, analyze, and choose the right mutual fund for a roth ira?

I recently opened a Roth IRA in the USA and I'm new to investing. How do I research a mutual fund and what aspects should I analyze to figure out if it fits my investment strategy (I might not even ...
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5answers
750 views

Why are the prices of some commodities (e.g. oil) more volatile than others?

Why are the prices of some commodities (e.g. oil) more volatile than others?