How to beat Market Makers || Volatility Smile and Put-Call Parity Explained

Today we look at the volatility smile or volatility smirk that arises for option prices in financial markets. We will also take a look at a real life example using the ASX200 index where we can potentially profit from the traditional option theory of Put-Call Parity.
00:00 Intro
00:27 Volatility Smile || Horizontal Skew
00:40 Volatility Smile || Vertical Skew
02:30 Put-Call Parity || Can you beat the Market Maker?
03:25 Put-Call Parity || ASX200 Index Order Book
04:12 Put-Call Parity || Can I profit?
05:05 Put-Call Parity || Short Call, Long Put
06:00 Put-Call Parity || Short Put, Long Call
06:50 The Market Maker Advantage
Introduction to financial markets and instruments - Kaggle edition: / @optiverglobal
Optiver Realized Volatility Kaggle Challenge: www.kaggle.com/c/optiver-real...
★ ★ QuantPy GitHub ★ ★
Collection of resources used on QuantPy TH-cam channel. github.com/thequantpy
★ ★ Discord Community ★ ★
Join a small niche community of like-minded quants on discord. / discord
★ ★ Support our Patreon Community ★ ★
Get access to Jupyter Notebooks that can run in the browser without downloading python.
/ quantpy
★ ★ ThetaData API ★ ★
ThetaData's API provides both realtime and historical options data for end-of-day, and intraday trades and quotes. Use coupon 'QPY1' to receive 20% off on your first month.
www.thetadata.net/
★ ★ Online Quant Tutorials ★ ★
WEBSITE: quantpy.com.au
★ ★ Contact Us ★ ★
EMAIL: [e-mail]
Disclaimer: All ideas, opinions, recommendations and/or forecasts, expressed or implied in this content, are for informational and educational purposes only and should not be construed as financial product advice or an inducement or instruction to invest, trade, and/or speculate in the markets. Any action or refraining from action; investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied in this content, are committed at your own risk an consequence, financial or otherwise. As an affiliate of ThetaData, QuantPy Pty Ltd is compensated for any purchases made through the link provided in this description.