Mark Cuban is charged with Insider trading Mark Cuban is definitely one guy whose success story has inspired quite a few to always do what they love . Now this news item is disturbing !! . I hope he comes out clean. I think he will.

Well, there are is an alphabet soup of Volatility spreads that a trader can enter in to. However , this is something which I came across recently and I believe is probably the best way to classify time spreads Vs Others. Time spreads want low real volatility of the prices and high implied volatility. Trader does not want underlying to move but at the same time wants market expectation about the movement of underlying to strengthen.

Vol modeling is tough! but I think it is well worth the effort ..Why do I think so? Well there are many reasons…But the simplest way to answer is by a simple question ! If you buy an option at implied vol = 20% , delta hedge it and notice that the realized vol is 30% , do you make money ? Yes, would be your answer , if you just understand at a 10,000 ft view!

“The fox knows many things, but the hedgehog knows one big thing.” - Archilochus (7th-century b.c.e.) Here are a few links which talk about the deeper meaning of the above quote. Jim Collins View : The fox is a cunning creature, able to devise a myriad of complex strategies for sneak attacks upon the hedgehog. Day in and day out, the fox circles around the hedgehog’s den, waiting for the perfect moment to pounce.