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Crypto Realized Vol Regime
Crypto Realized Vol Regime — Shifts in realized volatility that redefine sizing and carry.
Implied Realized Spread
Implied Realized Spread — Gap between implied and realized vol that defines carry for short-vol books.
Realized Volatility
Realized Volatility — Historical return variation that determines PnL for delta-hedged option positions.
Strangle
A strangle is an OTM call plus an OTM put — cheaper than a straddle, needs a bigger move, same vol-vs-realized logic.
Variance Risk Premium
Variance Risk Premium — Gap between implied and realized volatility that systematic vol sellers harvest.
Variance Swap
Variance Swap — Contract paying realized variance versus strike, core institutional vol transfer instrument.
Volatility Arbitrage
Volatility Arbitrage — Trading discrepancies between implied, realized, and cross-asset volatility.
Effective Spread
Effective spread is twice the signed distance from the trade price to the prevailing midpoint, the realized cost of crossing versus posting.
Low Volatility Factor Effect in Stocks
Overweight low-realized-vol (or low-beta) stocks and underweight high-vol names — the low-risk anomaly as a long-short or defensive long-only.
Volatility Risk Premium Effect
Sell implied volatility and buy realized — harvest the gap that insurance buyers pay, with a jump left tail.
Crypto Realized Vol Regime
Crypto Realized Vol Regime — Shifts in realized volatility that redefine sizing and carry.
Effective Spread
Effective spread is twice the signed distance from the trade price to the prevailing midpoint, the realized cost of crossing versus posting.
Execution Risk
The risk that your trade logic is right but your realized fill, slippage, timing, or spread destroys the expected edge.
Implied Realized Spread
Implied Realized Spread — Gap between implied and realized vol that defines carry for short-vol books.
Low Volatility Factor Effect in Stocks
Overweight low-realized-vol (or low-beta) stocks and underweight high-vol names — the low-risk anomaly as a long-short or defensive long-only.
Realized Volatility
Realized Volatility — Historical return variation that determines PnL for delta-hedged option positions.
Strangle
A strangle is an OTM call plus an OTM put — cheaper than a straddle, needs a bigger move, same vol-vs-realized logic.
Variance Risk Premium
Variance Risk Premium — Gap between implied and realized volatility that systematic vol sellers harvest.
Variance Swap
Variance Swap — Contract paying realized variance versus strike, core institutional vol transfer instrument.
Volatility Arbitrage
Volatility Arbitrage — Trading discrepancies between implied, realized, and cross-asset volatility.
Volatility Risk Premium Effect
Sell implied volatility and buy realized — harvest the gap that insurance buyers pay, with a jump left tail.