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Options in Elevated Volatility Regimes: Adapting Strategies for Unsettled Markets

Options in Elevated Volatility Regimes: Adapting Strategies for Unsettled Markets

Aired On

Oct / 06 / 2025 - 2:00 pm - EDT

Mathew Cashman
OCC , The Options Industry Council (OIC)

What changes when volatility remains elevated – and stays elevated?
In this session, we’ll examine how elevated volatility environments impact options pricing, trading behavior, and strategy selection. Using real-world context and trader-friendly examples, we’ll walk through how to think about risk, time, and directional exposure when volatility becomes a feature of the landscape, not just a temporary spike.

We’ll discuss:
• How elevated implied volatility changes the behavior of Delta, Gamma, Theta, and Vega
• Why some strategies become more (or less) attractive in volatile markets
• The role of skew and term structure in elevated volatility regimes
• The importance of context when interpreting volatility

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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.

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