Trading Volatility as Probabilities and Distributions

Trading volatility involves betting on various outcomes within an asset class by analyzing probabilities and distributions. It allows for a flexible approach to predicting asset movements beyond just bullish or bearish trends. Options play a vital role in trading volatility as they enable investors to access different points of an asset's distribution in terms of time and value. By understanding and trading volatility, investors can wager on specific outcomes based on available information and market positioning.