The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to talk about how the option experts short volatility. There’s really two main ways to short volatility in a portfolio. The first way is to choose a volatility product. That's probably the easiest way that most institutions as well as many personal traders or many portfolio traders choose to gain exposure to shorting volatility and they do it through these volatility products. Now, it could be things like VIX, VXX, UVXY, etcetera and each of these products have their own differences which we’ve covered actually in a couple of episodes just previously to this. With these volatility products, it's an easy way for institutions to gain broad-based exposure to volatility in general. And so, they can easily move in and out of these products as needed. They can add volatility exposure or they can reduce volatility exposure. The second way to add short volatility exposure is to short option premium. Now, t