Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...

We can see the difference between SVI and spline more clearly here. As expected, SVI curves show nice “smiles.” On the other hand, the spline follows the datapoints more closely but can go only as far ...

One of the most important risk factors when trading financial assets and their derivatives is the actual and historical volatility of the underlying asset that impacts the implied volatility used to ...

Bitcoin’s implied volatility (IV) has surged to a 2.5-month high above 42, mirroring similar seasonal spikes seen in October 2023 and 2024. Historically, the second half of October and November ...

Volatility modeling is no longer just about pricing derivatives—it's the foundation for modern trading strategies, hedging precision, and portfolio optimization. Whether you're trading gold futures, ...

Eduardo Abi Jaber and Shaun (Xiaoyuan) Li introduce the two-factor quintic Ornstein–Uhlenbeck (OU) model, where volatility is modelled as a degree-five polynomial of the sum of two Ornstein–Uhlenbeck ...