Volatility Surface & Volatility Smile Explained

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Volatility surface and volatility smiles can seem confusing but at their core, they're relatively simple statistical functions.
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Опубликовано:

9 авг 2022

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Комментарии : 28

@aycharaych День назад

Thank you for taking your time.

@esInvests День назад

My pleasure!

@Halaster53 Год назад

Thank you for diving deep into these concepts. I feel more informed after watching your videos than what I “learned” in school. The crazy thing is, I was a math tutor in college. I always struggled with statistics. I think it would have been easier if I had professors explain these concepts the way you do.

@esInvests Год назад

Absolutely awesome to hear. A lot of them can seem overwhelming at first but if a smooth brained neanderthal like me can sort it out - I'm a firm believer anyone can :)

@shrejay2469 Год назад

Thanks for this. I totally disliked stats in school, this video made me appreciate in a different light. Would enjoy a part 2/3 like Proxima says, maybe something on how traders could use this behavior to their advantage?

@esInvests Год назад

I hear you dude. A lot of stats can seem annoying and just extra lol. But I find myself looking through the lens of statistics very frequently. Like most of what we learn in school, much of it is theoretical but there are some gems that can be really utilitarian.

@gvpathi 3 месяца назад

Hey good intro... Made me probe further on the impact of this volatility in price. Thanks.

@esInvests 3 месяца назад

Glad it was useful for you!

@DenisRodriguezSantos Год назад

I'm trying to model a volatility surface and smile, and your input with the skews was very clarifying I'm still in need to know how to apply those concepts into a calculator \ excel tho hahaha

@esInvests Год назад

awesome glad to hear! good luck with the modeling!

@meganopoullus 9 месяцев назад

Great introduction to the subject!

@esInvests 9 месяцев назад

Love to hear it!

@atman604 Год назад

Thanks, i´m learning to navigate in TWS ( Interactive brokers), they have a implied volatility viewer 3D and didn t know what to look for. would like to see part 2 and 3 and...

@esInvests Год назад

Stoked to hear interest in volatility surfaces! I find their structure fascinating.

@jjjbossjjj 8 месяцев назад

Great vid! I'm a bit confused though. Doesn't the Vol surface itself use BSM to generate IV datapoints (based on market price)? i.e. Using a flawed model to generate the surface that shows the assumptions are wrong in the first place?

@esInvests 8 месяцев назад

Depends on the source data for the surface but vol forecasts are generally estimated by more sophisticated market participants who are using advanced models to price vol, not BSM. Implied vol is simply the derived vol based on option prices.

@johnpalma7265 3 месяца назад

Whatched ( let play) all the way through, the 2 advrtisements that poped up after about the first 5 minutes, hope that helps, thanks.

@esInvests 3 месяца назад

Hahaha thanks for the gesture!

@jarlaxel Год назад

Watched to the end

@esInvests Год назад

I think you’re the first one that made it!

@esInvests Год назад

I think you’re the first one that made it!

@rossfriedman6570 Год назад

People assume the price will stay constant unless there's huge speculation? It seems like riskier markets would have more of a smile or less of a smile?