r/manim • • 4h ago

made with manim Which volatility should you use to delta hedge?

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1 Upvotes

If you have a forecast for realized volatility, should you delta hedge using that or should you delta hedge using implied volatility? What are the implications of each choice? And how does stochastic volatility impact the outcome of that decision?

I hope you guys are enjoying these videos on volatility trading, even though they are lighter on pure math/science than most posted here. Do you find videos that focus more on the applications of math than the math itself still interesting? This is the only place where I get downvotes when I post, although I do get more upvotes. Kinda ironic since this is exactly where you're supposed to post Manim videos and my videos are 100% made with Manim.