Stock market volatility what can we learn from options


Stock market volatility what can we learn from options


One way is to understand more about volatility. Fabrizio Ferriani of the Bank of Italy shows how.His research received the Denis Sargan prize at the Royal Economic Society annual conference 2014 in Manchester.Produed by ECON FILMS. Q: Could we start with the basics. If you look at a day, the movement is typically up, but not by very much. Any movement up or down from its expectation is the volatility.Historically, the volatility of the stock market is roughly 20% a year and 5.8% a month, but volatility keeps on changing, so we go through periods of high volatility and low volatility.The biggest driver of volatility is a drop in the market.

There are simple leverage reasons whMarch has been very kind to the markets.Share prices are on the rise, as investor appetite for risk has increased.And volatility has cooled.




Stock market volatility what can we learn from options

Stock market volatility what can we learn from options

Stock market volatility what can we learn from options



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