Why Implied Volatility Usually Exceeds Realized Volatility
S&P 500, 1990–2007: implied variance averaged over twice realized variance. The gap predicted quarterly returns, but it is not free money.
#implied-volatility
1 articles
1 articles
S&P 500, 1990–2007: implied variance averaged over twice realized variance. The gap predicted quarterly returns, but it is not free money.