Low volatility is a widely follow investment factor and it can be argued that in the nearly five years since the PowerShares S&P 500 Low Volatility Portfolio (PowerShares Exchange-Traded Fund Trust II ...

Most days, the stock market doesn’t see big moves higher or lower. Generally, indexes like the S&P 500 gain or lose less than 1% a day. But from time to time, the market experiences significant price ...

Stochastic volatility is the unpredictable nature of asset price volatility over time. It's a flexible alternative to the Black Scholes' constant volatility assumption.

It is doubtful that any level of sophistication in the use of financial instruments will ever create a new paradigm of permanently lower volatility. Complicated derivatives and securitizations are ...

In Know Your Options, I tend to mention Implied Volatility quite often. I’m sure most readers already understand the general idea that options with high IVs are expensive and options with low IVs are ...

Bitcoin has exhibited strong performance in the past decade, but its long-term uptrend has been accompanied by immense volatility and large drawdowns along the way. Bitcoin’s volatility remains ...

The Black-Scholes model remains the 2026 gold standard for pricing trillions in derivatives. It uses five key data points: stock price, strike, time, interest rates, and volatility. This math-heavy ...