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Not All Time Spreads Are Created Equally: The Concept of Flattening Implied Volatilities

Not All Time Spreads Are Created Equally: The Concept of Flattening Implied Volatilities

Aired On

Aug / 23 / 2023
2:00 pm - EDT
Mathew Cashman

If you’re trading time spreads, you want to understand the concept of Flattening Implied Volatility Levels. Let us help you to understand how the conceptual pieces of Implied Volatility levels across a duration curve work in conjunction with how much Vega are in those exact options. On August 23rd,  join us for a live webinar led by Mat Cashman, a former market maker and current OIC instructor, as he presents “Not all Time Spreads are created equally: The concept of Flattening Implied Volatilities”. During this deep-dive on Time spreads and Implied Volatilities you’ll learn about:

  • Implied Volatilities and Duration 
  • The Vega Ratio – how and why it’s Important
  • How to calculate a Flattening Volatility level
  • Measuring the levels and potential risks
Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from OCC and is being posted with its permission. The views expressed in this material are solely those of the author and/or OCC and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

Disclosure: Options (with multiple legs)

Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by clicking the link below. Multiple leg strategies, including spreads, will incur multiple transaction costs. "Characteristics and Risks of Standardized Options"

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