IVAnalog
Decode market volatility with history analogs. IVAnalog analyzes today’s implied volatility (IV) prices and term structure against past patterns, offering valuable context and insights.
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What is the VIX and Why It Matters?
When it comes to market sentiment and risk assessment, few indicators are as widely followed as the VIX—often referred to as the “fear gauge” of the stock market.…
4 min read
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On Risk Pricing and Hedging (IV): Risk Pricing and Valuation
Option pricing is one of the most powerful yet misunderstood tools in finance. Beneath all the jargon and math lies a fundamental question we’ve returned to throughout this…
4 min read
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On Risk Pricing and Hedging (III): A Historical Look at Market Probabilities
In the markets, not every drop signals collapse, and not every crash is the end of the world. While dramatic moments draw headlines, most of the time the…
4 min read
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On Risk Pricing and Hedging (II): Put Options for Hedging, and Speculation
“The invention of marine insurance transformed the risks of trade from fatal uncertainty into manageable cost.”— Peter Bernstein As we discussed in Part 1, one of the keys…
4 min read
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On Risk Pricing and Hedging (I): It All Starts with a Car Insurance Policy
We All Live With Risk Every day, we face risks:Car accidents.Job loss.Sudden health issues.Market crashes.Family emergencies. Sure, we’re often told to “stay positive” or “adjust our mindset,” and…
4 min read
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VIX Explained (IV): The Risks of Option Sellers and the Liquidity Crisis
Why is a High VIX a Signal of Market Liquidity Risk? To answer this question, we must first understand what a single put trade means for a put…
4 min read
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VIX Explained (III): How to Buy a Stock Market Insurance Plan?
In the stock market, insurance is essentially purchasing a put option. For the put option buyer, from an insurance perspective, the only significant drawback is the high cost,…
4 min read
