Options field guide
All guides · Page 30
Plain-language guides to earnings, implied volatility, option strategies, target prices, and time decay
706 guides
Variance Swap Explained: Payoff, Replication, and Risk
Learn how a variance swap settles against realized variance, why its notional differs from vega, how option-strip replication works, and where risks remain
Read guideVariance vs volatility: the square-root difference that changes pricing
Learn why variance is volatility squared, how each measure aggregates through time, and why VIX, variance swaps, and option risk cannot be compared by simple averages
Read guideVolatility Clustering and GARCH Explained
Learn why calm and turbulent returns cluster, how GARCH updates conditional variance, what persistence means, and why a forecast is not an option signal
Read guideVolatility Cone Explained: Put Current IV in Historical Context
Learn how a volatility cone compares current implied volatility with rolling realized-volatility distributions across horizons, and where that comparison can mislead
Read guideVolatility of Volatility and VVIX Explained
Learn what vol-of-vol measures, how VVIX is built from VIX options, why it differs from VIX, and how second-order volatility risk changes option P&L
Read guideVolatility risk premium explained: implied versus realized volatility
Learn what volatility risk premium measures, why implied volatility can exceed subsequent realized volatility, and why selling options is not free income
Read guideVolatility Skew Carry and Roll-Down Explained
Learn how an option position moves across the volatility surface, what skew carry and roll-down mean, and why spot paths and hedging can reverse them
Read guideVolga or Vomma Explained: How Vega Changes with IV
Learn what Vomma or Volga measures, how it adds curvature to a vega estimate, why its sign varies, and how to aggregate it across an option position
Read guideIron condor vs. iron butterfly
Understand iron condors and iron butterflies, the decision it supports, and the pricing and execution risks to check before acting
Read guideLEAPS calls vs. owning stock
Understand LEAPS calls and stock ownership, the decision it supports, and the pricing and execution risks to check before acting
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