### Volatility and Price of a Straddle, Are They The Same?

Yesterday I found another piece of ignorance on Medium: Stop Watching The VIX, Just Make Your Own

tl;dr : Just use ATM straddles ðŸ¤¦

This is of course not correct. As I have written before on this blog that (skipping mathematical rigor) the value of ATM straddle is

or about 80% of the expected volatility. So if SPY = $400 and VIX = 20, the expected volatility is$400 * 20/100 = $80, then 1 year ATM straddle would be about 80% of$80 ~ $64 Alternatively, if you see a straddle, you can approximate expected volatility dividing by 80%. For example SPY ATM straddle for 2022/11/18 expiration is about$25 . The expected volatility for November expiration is $25/0.8 ~$31.25

Even animals are not spared from Russian violence. This dog was found with "V" burned on his snout

Another dog had "Z" cut out on its snout ( video )

russian soldiers burned horses alive

shot cattle for fun

deliberately killed cattle and stole agricultural machinery in order to starve us.

Most of the readers of this blog are from US, Canada, and Europe with developed financial markets. Your voice is making a difference! Your support will drive away russian aggressor and bring peace. I am grateful to everyone who made phone calls, donated money, or joined a demonstration. Please keep calling your political representatives and urge them to provide more aid to Ukraine!

#### 1 comment:

1. Anonymous4/29/2023