Posts Tagged ‘Volatility Risk’


Options Trading Lesson: Volatility

To get a firm grasp of volatility’s effect on vertical spreads, let us examine three spreads against different implied volatilities while keeping the stock price constant at 67.5. These are the 60 – 65, 65 – 70 and 70 – 75 call spreads.In-the-Money Vertical SpreadsLooking at the in-the-money spread (June 60 – 65), we see [...]

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