How to beat Market Makers || Volatility Smile and Put-Call Parity Explained
Today we look at the volatility smile or volatility smirk that arises for option prices in financial markets. We will also take a look at a real life example using the ASX200 index where we can potentially profit from the traditional option theory of Put-Call Parity.
00:00 Intro
00:27 Volatility Smile || Horizontal Skew
00:40 Volatility Smile || Vertical Skew
02:30 Put-Call Parity || Can you beat the Market Maker?
03:25 Put-Call Parity || ASX200 Index Order Book
04:12 Put-Call Parity || Can I profit?
05:05 Put-Call Parity || Short Call, Long Put
06:00 Put-Call Parity || Short Put, Long Call
06:50 The Market Maker Advantage
Introduction to financial markets and instruments - Kaggle edition: / @optiverglobal
Optiver Realized Volatility Kaggle Challenge: https://www.kaggle.com/c/optiver-real...
★ A data driven path to getting a job in Quant Finance
https://www.quantpykit.com/
★ QuantPy GitHub
Collection of resources used on QuantPy YouTube channel. https://github.com/thequantpy
Disclaimer: All ideas, opinions, recommendations and/or forecasts, expressed or implied in this content, are for informational and educational purposes only and should not be construed as financial product advice or an inducement or instruction to invest, trade, and/or speculate in the markets. Any action or refraining from action; investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied in this content, are committed at your own risk an consequence, financial or otherwise.