## What is a Linear Payoff? What is a Positively or Negatively Convex Payoff?

Linear Payoffs
In Trading & Investing, a linear payoff refers to a financial instrument or investment strategy where the return

## What is the MOVE (Merrill Lynch Option Volatility Estimate) Index?

The MOVE Index, short for "Merrill Lynch Option Volatility Estimate," is a measure of market expectations for future

## How Can an Option Trader Hedge His Forward Risk?

When you trade Call or Put Options, the underlying asset is the Forward corresponding to the option maturity, not the

## Black-Scholes Model & Interest Rates

We now know from our previous blog post how Options are priced using the Black-Scholes model (or more complex iterations)

## Call / Put Options & Black-Scholes Model

Options are financial derivatives that give the holder the right (but not the obligation) to buy or sell an underlying

## What Is the CBOE Volatility Index (VIX)?

The VIX, or the CBOE Volatility Index, is a popular measure of market expectations for future volatility. It is often

## Implied Volatility vs. Historical Volatility

Implied Volatility (IV): This is a market-derived estimate of future volatility embedded in the current prices of options. It reflects