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Autore principale: Yifeng, Peng
Natura: Preprint
Pubblicazione: 2024
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Accesso online:https://arxiv.org/abs/2403.00474
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author Yifeng, Peng
author_facet Yifeng, Peng
contents This study examines the performance of a volatility-based strategy using Chinese equity index ETF options. Initially successful, the strategy's effectiveness waned post-2018. By integrating GARCH models for volatility forecasting, the strategy's positions and exposures are dynamically adjusted. The results indicate that such an approach can enhance returns in volatile markets, suggesting potential for refined trading strategies in China's evolving derivatives landscape. The research underscores the importance of adaptive strategies in capturing market opportunities amidst changing trading dynamics.
format Preprint
id arxiv_https___arxiv_org_abs_2403_00474
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Volatility-based strategy on Chinese equity index ETF options
Yifeng, Peng
General Finance
Trading and Market Microstructure
This study examines the performance of a volatility-based strategy using Chinese equity index ETF options. Initially successful, the strategy's effectiveness waned post-2018. By integrating GARCH models for volatility forecasting, the strategy's positions and exposures are dynamically adjusted. The results indicate that such an approach can enhance returns in volatile markets, suggesting potential for refined trading strategies in China's evolving derivatives landscape. The research underscores the importance of adaptive strategies in capturing market opportunities amidst changing trading dynamics.
title Volatility-based strategy on Chinese equity index ETF options
topic General Finance
Trading and Market Microstructure
url https://arxiv.org/abs/2403.00474