By Andrew
Watching CNBC’s Fast Money last week one of the analysts discussed an interesting trade for January based on the theory of Options Backwardation. Backwardation occurs when the implied volatility of an option, which is used in the calculation of the option’s premium, is higher in the near term than in the long term. Meaning [...]
Options Backwardation
January 8th, 2008 · No Comments
Tags: Market Commentary