How to Use ME10013: Volatility & Risk in Trading

Volatility metrics enable options trading, position sizing, and regime detection.

Strategy: IV-RV Spread Trade

def vol_trade():
    """Trade implied vs realized volatility spread."""
    iv = requests.get(f"{MADJIK_API}/metrics/ME10013/iv/now", headers=HEADERS).json()
    rv = requests.get(f"{MADJIK_API}/metrics/ME10013/rv/now", headers=HEADERS).json()
    
    btc_iv = iv["data"]["atm_30d"]
    btc_rv = rv["data"]["rv_30d"]
    spread = btc_iv - btc_rv
    
    if spread > 15:
        return {
            "signal": "SELL_VOLATILITY",
            "execution": "Sell BTC options or MSTR strangles",
            "expected_return": f"~{spread/2:.0f}% if IV normalizes"
        }
    elif spread < -10:
        return {"signal": "BUY_VOLATILITY", "execution": "Buy straddles"}
    return {"signal": "NEUTRAL", "spread": spread}

print(vol_trade())

Risk Matrix

For informational purposes only. Not financial, investment, tax, legal or other advice.