Elevated Volatility Increases Option Premiums Gateway Investment Advisers

By hairstyler On Nov 11, 2025

Elevated Volatility Increases Option Premiums - Gateway Investment Advisers

Elevated Volatility Increases Option Premiums - Gateway Investment Advisers With the vix ® futures curve on november 30 reflecting expectations of well above average implied volatility well into 2023, persistently elevated implied volatility may continue to be a positive contributor to option writing performance. The spread between the two measures is referred to as the volatility risk premium, or vrp, and can be monetized by index option writing strategies such as those ofered by gateway. the vrp exists due to consistently mispriced volatility in s&p 500® index options.

Elevated Volatility Increases Option Premiums - Gateway Investment Advisers

Elevated Volatility Increases Option Premiums - Gateway Investment Advisers Michael buckius, cfa®, ceo, cio, and portfolio manager at gateway investment advisers, an affiliate of natixis investment managers, joined keith black, managing director of ria channel, to discuss how investors can take advantage of today’s market, characterized by volatility and interest rate levels higher than those experienced before 2022. As implied volatility increases, call and put option prices go up. when implied volatility decreases, option prices go down. Implied volatility rises when the demand for an option increases, and decreases with a lesser demand. typically you will see higher priced option premiums on options with high volatility, and cheaper premiums with low volatility. Higher volatility typically increases option premiums, while lower volatility decreases them. this occurs because greater price uncertainty makes options more valuable due to the potential for significant price movements.

Gateway Investment Advisers On LinkedIn: Volatility & The Fed - Gateway ...

Gateway Investment Advisers On LinkedIn: Volatility & The Fed - Gateway ... Implied volatility rises when the demand for an option increases, and decreases with a lesser demand. typically you will see higher priced option premiums on options with high volatility, and cheaper premiums with low volatility. Higher volatility typically increases option premiums, while lower volatility decreases them. this occurs because greater price uncertainty makes options more valuable due to the potential for significant price movements. Volatility is one of the biggest factors affecting options prices. when volatility is high, options premiums tend to rise (all else being equal). when volatility is low, options premiums tend to drop. that’s because options derive value from uncertainty. High volatility increases the potential for significant price movements, leading to higher option premiums. this is because the likelihood of the option ending in the money increases, raising the cost of the option. The current environment of ongoing market volatility makes funds like gqi well positioned. the options portion of the strategy monetizes volatility, earning higher premiums and income. Smart traders can capitalize on inflated premiums and unpredictable price swings using strategies tailored for volatility. below are the best option strategies for high iv (implied volatility) conditions, along with use cases and risk profiles.

Gateway Investment Advisers On LinkedIn: #markets #volatility

Gateway Investment Advisers On LinkedIn: #markets #volatility Volatility is one of the biggest factors affecting options prices. when volatility is high, options premiums tend to rise (all else being equal). when volatility is low, options premiums tend to drop. that’s because options derive value from uncertainty. High volatility increases the potential for significant price movements, leading to higher option premiums. this is because the likelihood of the option ending in the money increases, raising the cost of the option. The current environment of ongoing market volatility makes funds like gqi well positioned. the options portion of the strategy monetizes volatility, earning higher premiums and income. Smart traders can capitalize on inflated premiums and unpredictable price swings using strategies tailored for volatility. below are the best option strategies for high iv (implied volatility) conditions, along with use cases and risk profiles.

Gateway Investment Advisers | Natixis Investment Managers

Gateway Investment Advisers | Natixis Investment Managers The current environment of ongoing market volatility makes funds like gqi well positioned. the options portion of the strategy monetizes volatility, earning higher premiums and income. Smart traders can capitalize on inflated premiums and unpredictable price swings using strategies tailored for volatility. below are the best option strategies for high iv (implied volatility) conditions, along with use cases and risk profiles.

Gateway Investment Advisers On LinkedIn: #q3 #spx #put #bxm #agg #vix # ...