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--- desktop:volatility_tab [2023/12/22 19:49] – created rob
+++ desktop:volatility_tab [2025/03/19 11:55] (current) – rob
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 ====== Volatility Tab ======
+{{:desktop:mm-volatility_tab_1_.png|}}
+====== Base Skew's Futures Price ======
+The futures price with which the base vols associate.
+**Also Known As:**
+  * **Vols** = Volatility.
+====== Disable Auto Update Base Skew's Futures Price ======
+Disable the base futures price from being automatically updated when using any of the fit or adapt methods.
+====== Float Rate ======
+The volatility skew float rate. This describes the rate at which the skew moves relative to the futures movement.
+**Details:**
+  * **0** = Fixed
+  * **1** = 100% float
+  * **Max = 2** (200% float)
+  * Float rate can be set **negative**.
+====== Volatility Creation Method ======
+Click in the value area to choose the method for creating volatilities.
+**Descriptions:**
+  * **Volatility per strike**: Input a volatility on a per strike basis.
+  * **Multiple slopes**: Create multiple skews between multiple strikes.
+  * **Standard deviation**: Uses a DTE standard deviation skewing method. Input volatility at standard deviation points.
+**Comments:**
+  * **Volatility per strike**: Select a **fit method** to build or rebuild the skew.
+  * **Multiple slopes**: Select an **adapt method** to rebuild the skew.
+  * **Standard deviation**: It is **pro-rated based on the DTE**. The adapt method can be used to build and manage the skew.
+  * Both the **fit** and **adapt** methods are found on the right-hand side of the window under the **fit category** and can be used to build and manage the skew.
+====== Draw Skew Method ======
+The method for drawing the skew. The skew can go through all volatility points or be smoothed.
+**Details:**
+  * **Thru Base Vols**: The skew will be drawn through every known base volatility point.
+  * **Smooth Base Vols**: The skew will be smoothed using all known base volatility points. The skew may not go through all strike base volatility due to smoothing of the volatilities.
+**Comments:**
+  * **Base vols**: The volatility of a strike associated with the base skew futures price.
+  * Base vols are found in the strike volatilities.
+====== Smooth Volatility Method ======
+Smoothing all strike volatility points.
+**Note:** The skew may not go through all strike volatilities.
+====== Max Curves ======
+Set the maximum number of curves allowed. This determines the amount of smoothing to be applied.
+**Example:**
+  * **2** = Max of 2 curves (applies a 3rd-order polynomial).
+  * **3** = Max of 3 curves (applies a 4th-order polynomial).
+====== Strikes Volatilities ======
+Manage strike volatilities. Add, edit, and remove strike volatility points. Volatility is expressed in decimal form.
+A volatility of **30.25%** would be entered as **0.3025**.
+**Also Known As:**
+  * **Strike** = Exercise Price
+  * **Strike** = K
+  * **Vols** = Volatility
+  * **Base Vols** = These are the strike volatility points from which the base skew is created.
+    - It uses the **base skew futures price** as a reference for the volatility of the strike at the base skew’s futures price.
+====== Min Ticks ======
+Set the number of ticks to ignore when using a **fit method**.
+====== Change with Vol Change ======
+Change the **minimum** and **maximum** volatility when all volatilities are changed.
+====== Max Volatility ======
+Set the **maximum** volatility for this month.
+====== Min Volatility ======
+Set the **minimum** volatility for this month.
-Click to enable email notifications for this page
-Image
-Base Skew's Futures Price: The futures price with which the base vols associate.
-Also Known As:
-Vols = Volatility.
-Disable Auto Update Base Skew's Futures Price: Disable the base futures price from being automatically updated when using any of the fit or adapts methods.
-Float Rate: The volatility skew float rate. This describes the rate at which the skew moves relative to the futures movement.
-Details:
-= fixed
-= 100% float
-Max = 2(200%float)
-Float rate can be set negative
-Volatility Creation Method: click in the value area to choose the method for creating volatilities.
-Descriptions:
-Volatility per strike: Input a volatility on a per strike basis.
-Multiple slopes: Create multiple skews between multiple strikes.
-Standard deviation: Uses a DTE standard deviation skewing method. Input Volatility at standard deviation points.
-Comments:
-Volatility per strike: Select a fit method to build or rebuild the skew.
-Multiple slopes: Select an adapt method to rebuild the skew.
-Standard deviation: It is pro-rated based on the DTE. The adapt method can be used to build and manage the skew.
-Both the fit and adap methods are found on the right hand side of the window under the fit category and can be used to build and manage the skew.
-Draw Skew Method: The method for drawing the skew. The skew can go through all volatility points or smoothed.
-Details
-Thru Base Vols: The skew will be drawn through every know base volatility Point.
-Smooth Base Vols: The skew will be smoothed using all know base volatility points. The skew may not go through all strikes base volatility due to smoothing of the volatilities.
-Comments
-Base vols: The volatility of a strike associated with the base skew futures price.
-Base vols are found in the strike volatilities.
-Smooth Volatility Method: Smoothing all Strikes volatility points. Note: The skew man not go through all strikes volatility.
-Max Curves: Set the maximum number of curves allowed. The mount of smoothing to be applied.
-Example:
-= max of 2 curves(applies a 3rd order polynomial)
-= max of 3 curves(applies a 4th order polynomial)
-Strikes Volatilities: Manage strike volatilities. Add, edit and remove strike volatility points. Volatility is expressed in decimal form. A volatility of 30.25% would be entered as 0.3025.
-Also Known As:
-Strike = Exercise Price
-Strike = K
-Vols = Volatility
-Base Vols = These are the strike volatility points from which the base skew is created. It uses the base skew futures price as a reference of what the volatility for the strike at the base skews futures price.
-Min Ticks: Set the number of ticks to ignore when using a fit method.
-Change with Vol change: Change the minimum and maximum volatility when all volatilities are changed.
-Max volatility: Set the minimum volatility for this month.
-Min Volatility: Set the minimum volatility for this month.