---
title: Volatility Disagreement and Equilibrium Volatility Trading
url: https://www.ml-quant.com/papers/ssrn/4624158/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4624158
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624158
featured: 2023-11-08
citations: 0
topic: Derivatives & Volatility
---


# Volatility Disagreement and Equilibrium Volatility Trading

A model is created to understand how investors' disagreement on future volatility affects their trading of volatility derivatives, showing that trading decreases in more volatile periods and the variance risk premium can become positive when future volatility is underestimated.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624158
- Identifier: SSRN 4624158
- Released: 2023-11-06
- First featured: Quant Letter No. 25 (2023-11-08): https://www.ml-quant.com/issues/2023-11-08/
- Citations (Semantic Scholar): 0
- Published in: not yet
- Topic: Derivatives & Volatility

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