Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...
A volatility crush is the term used to describe the result of implied volatility exploding once the market opens higher or lower than where it closed the previous day. For new investors, implied ...
In Know Your Options, I tend to mention Implied Volatility quite often. I’m sure most readers already understand the general idea that options with high IVs are expensive and options with low IVs are ...
Market participants' expectations, as reflected in implied volatility, maybe a more accurate reflection of future price movements than past price movements. When it comes to short-term moves, ...
Volatility is expected to surge as February options expiration reduces stabilizing gamma levels, increasing realized and implied volatility. Current low realized volatility means minor S&P 500 moves ...
One of the most important risk factors when trading financial assets and their derivatives is the actual and historical volatility of the underlying asset that impacts the implied volatility used to ...