Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...
We've spoken a fair amount recently about implied volatilities in options, mostly with the intention of designing trades that allow us to purchase options that are relatively cheap and sell those that ...
Learn about the put calendar strategy, where traders sell a short-term put option and buy a longer-dated one, optimizing ...
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 ...
One of the major factors that influences the price of an option is implied volatility (IV). In simplest terms, implied volatility is the anticipated movement of an underlying equity over a certain ...
If you’re like most options traders, you already understand the implied volatility of an option is a measure of how much the markets expect the underlying to move over the life of the option. You also ...
The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...
Last week, the VIX closed at one of its lowest levels in recent history. Why? And what can we do about it? In my view, there are a number of inter-related reasons why option prices and option implied ...
"3-step implied volatility" analysis for a more accurate and true mean reverting signals. Cross-market implied volatility view is telling us a dynamic story not visible from the surface. A glance at ...
A lesser-known use for options trading is simply to bet on whether price swings, or volatility, will increase or decrease. And according to cryptocurrency market experts, the market is ripe for that ...
IV crush explained in simple terms. Understand how implied volatility drops affect options pricing and how to calculate the ...
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