Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies ...
IV crush explained in simple terms. Understand how implied volatility drops affect options pricing and how to calculate the ...
Learn about the volatility ratio indicator's meaning, calculation method, and its significance for traders. Find out how this ...
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, ...
As an options trader, I am always on the lookout for potential earnings plays. One stock that caught my attention is CrowdStrike, due to a significant difference in implied volatility of options for ...
The risk with options straddles and options strangles is limited Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied ...
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 ...
Market volatility has picked up in recent days, but some stocks are still showing surprisingly low implied volatility. Shopify (SHOP) for example, is showing implied volatility of 45% compared to a ...
When stocks make big moves, volatility spikes. Understanding how to capitalize on volatility using options can give you a trading edge. Every time you take an options position, you are taking a ...
Volatility is important for position sizing, determining risk, calculating stops and profit-targets, and rebalancing portfolios. Average true range is a useful measure for position sizing in futures ...
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 ...