Marginal REVOLUTION. What does low volatility in asset prices mean? by Tyler Cowen on May 30,. means price volatility should be mild.With the VIX inching lower again on Friday, investors and market watchers are at odds over what factors are driving ultra-low volatility and what it might.Let’s get the facts straight: low beta does not mean low volatility and it definitely does not mean low risk.
This is a common misunderstanding that even….Why does option value increase with volatility? – The “Balloon” Effect. Implied volatility is the. This means that the market is giving less risk premium.