Volatility arbitrage is a trading strategy that aims to profit from discrepancies between implied volatility and realized volatility in financial markets. It involves buying or selling options and other derivative securities to exploit mispricings caused by differences in expected and actual volatility levels. In this article, we’ll explore the concept of volatility arbitrage, its strategies,

Volatility refers to the degree of variation or dispersion in the price of an asset over time. It is a measure of the uncertainty or risk associated with the price movements of the asset. In this article, we’ll explore the concept of volatility, its calculation methods, factors influencing volatility, and its significance in financial markets.