Negative Volatility enters the vocabulary of US legal system
It is some years ago now since I wrote the comic about negative volatility (no I did not have the talent to draw it):
A forum member recently hinted to me that Negative Volatility also had entered the vocabulary of the US legal system not so long after (in a different context, but still related to options).
"Therefore, a Phlx XL participant’s account that includes a short call position and a short put position in the same option will have a total negative volatility among the two positions. The two positions, when combined, do not offset one another respecting volatility. Instead, the two positions, when combined, result in the aggregate negative volatility of the two positions."
http://edocket.access.gpo.gov/2008/pdf/E8-23490.pdf
