Patrick Boyle

These classes are all based on the book Derivatives For The Trading Floor, available on Amazon at this link. https://amzn.to/3GdLi2s
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

What is volatility trading?
Volatility trading is the term used to describe trading the volatility of the price of an underlying instrument rather than the price itself. For example, you could trade the price direction of an equity index, but volatility trading typically means trading the expected future volatility of the index. Any instrument whose price moves, exhibits price volatility. Volatility trading is simply buying and selling the expected future volatility of the instrument. Rather than predicting whether the price of an asset will move up or down, volatility traders are concerned with how much movement, in any direction, will occur.

How is volatility traded?
The most common way to trade volatility is using options. The value of an option is affected by several factors, but an essential determinant of its value is the expected future volatility of the underlying instrument, which is included in the pricing formulas as standard deviation. Other things being equal, options struck on an underlying with higher expected volatility will be more expensive than options struck on an underlying expected to be less volatile. Options therefore are a good way to gain exposure to the volatility of the underlying.

The price of volatility
The value of an option can be attributed to several components. By stripping these away, traders can imply an annualised volatility level that the option’s tick value equates to. This is known as the implied volatility. So an equity index may be trading at a certain price and it may have exhibited a certain realized level of volatility over the previous 12 months. Traders can compare this realized level of volatility with the current implied level as seen in the option market. However, there is a crucial difference here; the implied volatility level refers to the annualized volatility that is expected over the life of the option. In other words, it is forward looking and reflects traders’ current best estimate of what future realized volatility will be.

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Today we will learn in financial futures what is convenience yield?

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

In Financial Futures, what is convenience yield?

A convenience yield is the benefit or premium associated with holding an underlying product or physical good, rather than the associated derivative security or contract.

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Prediction markets like Kalshi and Polymarket have been described as "truth machines" that produce more accurate forecasts than traditional polling. In this video we look at how they actually work, why the federal government is fighting individual states over who gets to regulate a bet on a football game, how a soldier allegedly used classified military intelligence to win money on a crypto betting site, and why quantitative trading firms are now paying traders $200,000 a year to build algorithms that systematically take money from retail bettors. We also look at the political connections behind these platforms, the academic research on the social cost of making it very easy to gamble from your phone, and why — after all of this — you still can't trade futures on onions.

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

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When the United States took control of Venezuela's oil exports in early 2026, it collected an estimated $13 billion in crude sales — but the official ledger in Caracas records almost none of it, and six months on there is still no public accounting of where the money went. In this video we look at what happened to Venezuela's sovereign wealth: the missing oil revenues now sitting in an offshore account in Qatar, the four billion dollars of Venezuelan gold frozen in the vaults of the Bank of England that no one can legally claim, and the court-ordered auction that handed Citgo's parent company to an affiliate of Paul Singer's Elliott Management for nearly $6 billion. Along the way we explain the legal machinery that makes all of this possible — the alter ego doctrine, sovereign immunity and the Bancec ruling, the Terrorism Risk Insurance Act, and the "one voice" principle in English law — and the broader lesson for anyone trying to understand sovereign assets: a nation's wealth held abroad is only yours for as long as someone else's courts, banks and vaults agree that it is. We also cover the aftermath of the June earthquakes, the international relief effort, and why the question of who legitimately governs Venezuela sits at the centre of every one of these disputes.

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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Today we will learn what structured products are.

These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance

A structured product, also known as a market-linked investment, is a pre-packaged investment strategy based on a single security, a basket of securities, options, indices, commodities, debt issuance or foreign currencies, and to a lesser extent, derivatives. The variety of products just described demonstrates that there is no single, uniform definition of a structured product. A feature of some structured products is a "principal guarantee" function, which offers protection of principal if held to maturity. For example, an investor invests $100, the issuer simply invests in a risk-free bond that has sufficient interest to grow to $100 after the five-year period. This bond might cost $80 today and after five years it will grow to $100. With the leftover funds the issuer purchases the derivatives needed to perform whatever the investment strategy calls for. Theoretically an investor can just do this themselves, but the cost and transaction volume requirements of many derivatives are beyond many individual investors.

Structured products are designed to facilitate highly customized risk-return objectives. This is accomplished by taking a traditional security, such as a conventional investment-grade bond, and replacing the usual payment features (e.g. periodic coupons and final principal) with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of one or more underlying assets.

Structured products were created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used as an alternative to a direct investment, as part of the asset allocation process to reduce risk exposure of a portfolio, or to utilize the current market trend.

Structured products originally became popular in Europe and are a much smaller market in the United States, where they are offered as SEC-registered products, which means they are accessible to retail investors in the same way as stocks, bonds, exchange traded funds (ETFs) and mutual funds. Their ability to offer customized exposure to otherwise hard-to-reach asset classes and subclasses makes structured products useful as a complement to traditional components of diversified portfolios.

U.S. Securities and Exchange Commission (SEC) Rule 434 (regarding certain prospectus deliveries) defines structured securities as "securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities where an investor's investment return and the issuer's payment obligations are contingent on, or highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows".

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These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0
Check out our website http://www.onfinance.org/

Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle

What is Option Margin?

Option margin is the cash or securities an investor must deposit in their account as collateral before selling options. Only sellers of options have to post margin, buyers of options pay the entire premium upfront and that is the most that they can lose.

Margin requirements are established by the Federal Reserve Board in Regulation T and varies based on the option.

Option margin requirements are very complex and differ quite a bit from stocks or futures margin requirements. In the case of stocks and futures, margin is used as leverage to increase buying power, whereas option margin is used as collateral to secure a position.

Minimum margin requirements for various types of underlying securities are established by FINRA and the options exchanges. Brokers may have very different margin requirements since they can add to the minimum requirements set by regulators. Some option strategies, such as covered calls and covered puts, have no margin requirement since the underlying stock is used as collateral.

Traders must request options trading authorization when opening a new account. Often times, brokers will classify options trading clearance levels depending on the type of strategies employed. Buying options is typically a Level I clearance since it doesn't require margin, but selling naked options may require Level II clearances and a margin account. Level III and IV accounts often have lower margin requirements.

Option margin requirements can have a significant impact on the profitability of a trade since it ties up capital. Complex strategies, such as strangles and straddles, may involve computing multiple margin requirements. Traders should determine the margin requirements for a trade before entering into it and make sure that they can meet those requirements if the market turns against them.

How do you calculate option margin requirements?
The easiest way to calculate option margin requirements is using the Chicago Board of Options Exchange (CBOE) Margin Calculator that provides exact margin requirements for specific trades. Traders can also see the minimum requirements in the CBOE's Margin Manual. Brokerage accounts may have similar tools available to provide an idea of the cost before entering into a trade.

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Ten years on from the 2016 Brexit referendum, the UK is about to appoint its seventh Prime Minister in a decade — so was Brexit worth it? In this video we break down the real economic impact of Brexit: how much it actually cost the UK economy, why the doom-laden Treasury forecasts and the Leave campaign's £350 million NHS bus were both wrong, and what the data really shows about GDP, trade, the City of London, and business investment. We dig into the goods-versus-services split, why the people who voted Leave were hit hardest while the metropolitan elites worked around it, the great post-Brexit immigration paradox and the "Boriswave," whether Britain is really "poorer than Mississippi," and why both Brexit and the new "Rejoin" campaign rely on the same magical thinking. Finally, we look at Brexit as a global turning point — the first crack in the post-Cold-War order — and ask why ten years of arguing about Europe distracted Britain from the domestic problems actually driving its economic stagnation. Featuring research from the NBER, the OBR, the Bank of England, The Economist, the Financial Times and The Atlantic.

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

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Go to https://ground.news/pb to get up to 40% off unlimited access to stay fully informed. Subscribe through my link this month for 40% off unlimited access.

The average American is 39 years old - which is half the age of the sitting president - Donald Trump.
When Ronald Reagan was inaugurated at 69 years old, he became the oldest person to have ever served as president. Donald Trump and Joe Biden are even older and are now - the two oldest men to ever be inaugurated as president.

The average ages in the House and Senate at 58 and 64, are significantly older than the average American. A word often used to describe the nation’s governing class is “gerontocracy” - meaning government based on rule by old people.

It's not just in the US either - around the world our political leaders are older than ever before. Why has this happened?

Patrick's Books:
Statistics For The Trading Floor: https://amzn.to/3eerLA0
Derivatives For The Trading Floor: https://amzn.to/3cjsyPF
Corporate Finance: https://amzn.to/3fn3rvC

Ways To Support The Channel
Patreon: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://www.buymeacoffee.com/patrickboyle

Visit our website: https://www.onfinance.org
Follow Patrick on Twitter Here: https://bsky.app/profile/pboyle.bsky.social

Business Inquiries ➡️ [email protected]

Patrick Boyle On Finance Podcast:
Spotify: https://open.spotify.com/show/7uhrWlDvxzy9hLoW0EYf0b
Apple: https://podcasts.apple.com/us/podcast/patrick-boyle-on-finance/id1547740313
Google Podcasts: https://tinyurl.com/62862nve

Join this channel to support making this content:
https://www.youtube.com/channel/UCASM0cgfkJxQ1ICmRilfHLw/join

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