A common rule of thumb is that option implied volatility is overpriced more often than it is not. Stated in a more direct fashion, over a long period of time option sellers will be expected to profit ...

The VIX index was below 9 very briefly after last week's Federal Reserve announcement and has risen to a little over 10 right now - which actually seems expensive relative to realized volatility. I ...

The CBOE Volatility Index came on the scene in the 1990s as a way for investors to track expected risk in the market going forward. We found that, on average, the market overestimated volatility by ...

Risk is an interesting concept. It is mathematically calculated as the standard deviation of daily returns, which are then annualized to “volatility,” expressed as a percentage, which makes them ...

[caption id="attachment_23446" align="alignnone" width="1024"] Investors who bet on continued low volatility suffered steep losses (photo: Richard B. Levine/Newscom ...