November 2017
Beginner
238 pages
5h 12m
English
Over the course of this book, I have introduced the lingo and jargon of the options industry. There are two goals for this appendix: (1) for you to be able follow along with what I am trying to teach in this book; and (2) to present what I mean when I discuss these topics and to give you an understanding of what they mean to me when I talk about it.
Historical volatility is a backward-looking number. It is a representation of the history of volatility. Historical volatility typically uses a calculation called GARCH (Generalized Autoregressive Conditional Heteroskedasticity) to calculate how much an instrument has moved over a previous period of days. Without getting too deep into the weeds, ...
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