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Sticky Smile

With respect to an option's strike (strike price), it refers to the situation where the implied volatility (volatility skew) remains...

Short Position

When the investor is pessimistic (bearish) on the price of an asset, on expectation its the price will fall, he...

Sticky Delta

A situation where the implied volatility (volatility skew) remains unchanged (i.e., it sticks) for any given delta or moneyness. Options...

Volatility By Delta

A situation where the implied volatility (volatility skew) remains unchanged (i.e., it sticks) for any given delta or moneyness. Options...

Volatility By Moneyness

A situation where the implied volatility (volatility skew) remains unchanged (i.e., it sticks) for any given moneyness. In other words,...

Volatility By Strike

With respect to an option's strike (strike price), it refers to the situation where the implied volatility (volatility skew) remains...

Volatility Note

An interest rate product which pays a coupon linked to the absolute volatility of an interest rate index over a...

Black and Scholes

A valuation model which is used to price financial options under a number of simplistic assumptions, including specifically that the...

Vega-Neutral Portfolio

A portfolio of options which has a vega of zero. That is, the option combination implies a neutralized vega. This...

Vega

The amount of change in the price of an option in response to a 1% change in volatility of the...