Books

Notes on Trading Volatility: Correlation, Term Structure, and Skew

Trading Volatility: Correlation, Term Structure, and Skew
Colin Bennett

http://trading-volatility.com/Trading-Volatility.pdf


The book is a broad reference on basic option theory, dispersion, and exotic options. It includes practical insight into managing a hedged book with a focus on correlation, term structure, and skew.

In addition its appendix includes the following topics and more:

  • a taxonomy of historical vol computations including and how they rank on “bias” and “efficiency”
  • shadow greeks
  • cap structure arbitrage theory

It’s an outstanding reference so I took notes. For public sharing I re-factored them by topic and tied some back to my own investment writing.

You can find these edited notes in my public Notion page. 

If you use options to hedge or invest, check out the moontower.ai option trading analytics platform

editor

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