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What is a Weak Short? A weak short is an investing strategy used by traders who hold a short position on a financial asset with the intention to exit it as soon as they observe any sign of price strength. These traders are referred to as ‘weak shorts’ due to
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Introduction to Greeks in Options Pricing Greeks are a set of measures used within options pricing models that represent an option’s sensitivity to various factors. Among these Greeks, Vega and Vomma play significant roles as they demonstrate the degree to which an option’s price responds to changes in volatility. In
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What is a Volatility Swap? A volatility swap is a unique financial instrument that allows investors to speculate on an asset’s future volatility without being directly involved in its price movement. It functions as a forward contract, with the payoff determined by the difference between the realized volatility and the
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