1 definition by Obama’s Last Name
A vol node also known as an “implied volatility node” is something which supposed “Options trading experts” on Twitter have trouble grasping. It might be that their ego and self-worth is too inflated by the crowds of retail traders they lie to. These so called “experts” were dropped on their head as a kid so they didn’t get to that part of the book yet in “Options for Dummies” to learn what it is yet.
On a more serious note, a vol node is simply a point that represents implied volatility as a function of strike, moneyness, delta, or standard deviation from the underlying.
On a more serious note, a vol node is simply a point that represents implied volatility as a function of strike, moneyness, delta, or standard deviation from the underlying.
Normal person working at any large Market Making firm: There’s a kink in the /NG Natural Gas curve for the March tenor. A large block order came through and jacked up the implied vols of the OTM calls. I’m going to sell it then delta hedge as the skew reverts so I can profit the spread between the market vols and my theoretical vols.
Twitter Volatility Expert with a bunch of followers breaks into the office (Retard): NOOOOOOOOOO!!! A VOL NODE ISN’T A REAL THING!!! YOU GIYS ARE STUPIDDD YOU CANT MAKE MOMEY OFF THAT JUST BECAUSE I NEVER LEARNED OR TRADED BEFORE!!!!
Normal person working at any large Market Making firm: Security, please escort this retard out the building, thank you.
*retard later ends up throwing a tantrum later online and talking to the voices in the walls*
Twitter Volatility Expert with a bunch of followers breaks into the office (Retard): NOOOOOOOOOO!!! A VOL NODE ISN’T A REAL THING!!! YOU GIYS ARE STUPIDDD YOU CANT MAKE MOMEY OFF THAT JUST BECAUSE I NEVER LEARNED OR TRADED BEFORE!!!!
Normal person working at any large Market Making firm: Security, please escort this retard out the building, thank you.
*retard later ends up throwing a tantrum later online and talking to the voices in the walls*
by Obama’s Last Name December 28, 2022