Many capital market practitioners use options to take views on the direction of a market, or to hedge a portfolio against an adverse market move in a specific direction. However, option market-makers and other players often use options in a completely different way – to trade the volatility of a market, rather than the direction of the market. This trading paradigm has become more significant since the subprime crisis and with the increasing correlation between asset classes.

If it is possible to trade a market’s volatility, should volatility be considered a separate asset class? If so, are there risk/reward benefits to including this asset class in a portfolio’s asset allocation? What are the best ways to trade the volatility of a market?

On Wednesday, July 30, 2014 featured speaker Udi Sela, Vice President and Solutions Product Manager at Numerix, discussed how volatility can be traded as a separate asset class, using FX market examples to illustrate different ways to trade FX volatilities.

Mr. Sela covered:

  • Why volatility is a separate asset class
  • Current volatility levels in the FX markets
  • Examples of trading volatility, using:
    • Straddles
    • Strangles
    • Variance swaps
    • Digital options
  • Analyzing the results, given various possible outcomes
  • Selling volatility

 

To view the on-demand webinar, just register on the right side of this page.

Featured Speakers:

Udi Sela, Vice President & Solutions Product Manager, Numerix
Udi Sela has worked in the Foreign Exchange (FX) derivatives markets for 20 years. A senior derivatives trader and trading manager at Citibank and JPMorgan, he has developed expertise in derivatives spanning both vanilla and complex FX options. For the last eleven years, Sela has led product development and pre-sales functions within a range of financial software vendors.

Moderator: Jim Jockle, Chief Marketing Officer
Mr. Jockle leads the company's global marketing efforts, spanning a diverse set of solutions and audiences. He oversees integrated marketing communications to customers in the largest global financial markets and to the Numerix partner network through the company's branding, electronic marketing, research, events, public relations, advertising and relationship marketing.

Prior to joining Numerix, he served as Managing Director of Global Marketing and Communications for Fitch Ratings. During his tenure at Fitch, Mr. Jockle built the firm’s public relations program, oversaw investor relations and led marketing and communications plans for several acquisitions. He also oversaw the brand development of a new company dedicated to the enhancement of credit derivative and structured-credit ratings, products and services. Prior to Fitch, Mr. Jockle was a member of the communications team at Moody's Investors Service.

Register for the On-Demand Webinar

Select Form: 

Form #1: On-Demand Webinar

Keep me informed of future webinars from Numerix:

Sign me up to receive "Derivative Insights & Innovations" monthly newsletter by Numerix:

* Required fields
industry conference

Forex Network London 2018

analyst report

SRP Structured Products Platform Report 2018 - Numerix

video blog

Data, Product Innovation, and Trading Desk Skills: Where Are They All Going?

conference

11th Annual FIA International Derivatives Expo

white paper

MiFID II and Real-Time Technology Fortify Electronic Trading in OTC Markets

video blog

Middle Market and Regional Dealers are Embracing Electronification

conference

Structured Products & Derivatives Conference 2018

written blog

Transformative Power of Artificial Intelligence

news - article pdf - Dec 14, 2017

Risk.net Market Technology Awards 2018 | Actuarial Modelling Product of Year

in the news - Nov 28, 2017

GARP | Graph Technology: A Poweful Tool for Achieving Data Insight

news - article pdf - Dec 14, 2017

Buy-Side Technology Awards 2017 | Best Buy-Side Risk/Portfolio Analytics Product

press release - Dec 4, 2017

Best Analytics Platform for Structured Products Technology in Europe