Volatility arbitrage is a trading strategy used to profit from the difference between predicted future price volatility and the implied volatility of options based on an asset such as a stock.
Volatility skew describes the observation that not all options on the same underlying and expiration have the same implied volatility assigned to them in the market.
The Cboe Nasdaq Volatility Index (VXN) is a real-time market index reflecting the market’s expectations of the volatility of the Nasdaq 100 over the next 30 days.
A warrant premium is the additional value of a warrant in excess of the established minimum, which can be valued as the difference between its exercise price and the market price of the underlying asset.