Volatility Strategies

In this section

• Introduction to Volatility Trading Strategies
  An introduction to long and short volatility strategies, the Greek exposures that drive them, and the move thresholds behind common option structures.
• Long and Short Volatility Options Strategies
  How long and short volatility positions differ in payoff shape, theta exposure, vega exposure, and tail risk.
• Straddles, Strangles, and Combinations
  How straddles, strangles, and related combinations change premium cost, breakeven distance, and volatility exposure.
• The Role of Greeks in Volatility Strategies
  How delta, gamma, theta, and vega combine in long-volatility and short-volatility option structures.
• Volatility Crush and Earnings Options Plays
  Explain volatility crush around earnings, expected moves, and the trade-off between buying and selling premium into events.
• Options Stress Testing & Risk-Adjusted Returns
  How to stress test options positions, compare realized and implied volatility, and interpret Sharpe, Sortino, VaR, CVaR, and scenario results.
• Iron Condors, Butterflies, and Other Volatility Spreads
  Compare iron condors, butterflies, calendars, and diagonals, and relate each structure to volatility view, payoff shape, and risk limits.
• Additional Resources and Concluding Remarks
  Explore essential tools, regulatory insights, practical tips, and recommended readings to deepen your mastery of volatility strategies under Canadian market conditions.