Bloomberg VCUB: Strike Volatility Versus Straddle Premium

Summary

This note explains why a Bloomberg VCUB option matrix may show different values for strike and straddle views. The distinction is the displayed measure: the strike view presents volatility, while the straddle view presents a premium. A premium-based straddle is therefore not expected to show the same number as the volatility quote, even when the views refer to related option data.

The explanation cites VCUB help, which describes a streamlined basis-point premium display for premium-based instruments and says volatility and strike information can be shown or hidden. The answer also notes that users can configure the interface to display volatility alongside the premium. It does not detail the conversion between premium and implied volatility, nor does it address pricing assumptions, instrument conventions, or how to calculate a matching volatility independently.

Key ideas

• VCUB's strike view displays volatility, while its straddle view displays premium.
• Straddles and similar premium-based instruments can be shown in basis-point premium terms.
• The matrix can be configured to show volatility and strike data alongside premium.

Tags

# BLOOMBERG Strike vs Straddle Volatility


# BLOOMBERG Strike vs Straddle Volatility












In Bloomberg's VCUB, what is the difference between the "strike" volatility and changing this option to "straddle"? It seems like the "straddle" vol should be the same as the strike vol but it is not?

## Answer by AKdemy (score 6)

https://quant.stackexchange.com/a/71817

Generally, best to ask the help desk (F1F1) for simple questions like this.

See help VCUB `{LPHP VCUB:0:1 2824936 <GO>}`:

> Cube Options: Allow you to display or hide volatility and strike data, so you can maximize or streamline your matrix. For example, for premium-based instruments such as straddles, strangles, and risk reversals, the matrix offers a streamlined basis point premium view that displays values expressed in basis points, while giving you the flexibility to show or hide volatility and strikes.

Therefore,

- Straddle shows premium

- strike shows vol

You can force the GUI to display vol as well:

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.