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Options 101: Volatility
- What is Vega?
- Implied vs. realized volatility.
- What is the impact of low vs. high volatility environment on options trading?
- Correlation and becoming fully diversified by adding a volatility component to your portfolio.
- How do you get volatility exposure?
- What is an overlay strategy, and how do you construct one?
Misconceptions of the VIX:
- Quoting the VIX cash, which is not the same as VIX futures.
- The current pervasive attitude that the VIX is low.
- Believing it is a fantastic inverse correlation portfolio hedging tool, instead of buying a more direct portfolio hedge.
The Buzz: Potential new taxes that might be on the horizon for traders. Swan Wealth Advisors is in discussions with TD Ameritrade to start monthly options seminars.