How to beat Market Makers || Volatility Smile and Put-Call Parity Explained

Today we look at the volatility smile or volatility smirk that arises for option prices in financial markets. We will also take a look at a real life example using the ASX200 index where we can potentially profit from the traditional option theory of Put-Call Parity.

00:00 Intro
00:27 Volatility Smile || Horizontal Skew
00:40 Volatility Smile || Vertical Skew
02:30 Put-Call Parity || Can you beat the Market Maker?
03:25 Put-Call Parity || ASX200 Index Order Book
04:12 Put-Call Parity || Can I profit?
05:05 Put-Call Parity || Short Call, Long Put
06:00 Put-Call Parity || Short Put, Long Call
06:50 The Market Maker Advantage

Introduction to financial markets and instruments - Kaggle edition:    / @optiverglobal  
Optiver Realized Volatility Kaggle Challenge: www.kaggle.com/c/optiver-realized-volatility-predi…

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