Implied volatility is a powerful but often misunderstood metric that plays a major role in options trading. Implied volatility doesn’t tell you what’s going to happen to an option’s price, but it ...
Stock traders may already be familiar with the concept of volatility, which refers to the propensity of a security's price to move higher or lower. In the world of stocks, volatility is often ...
In this video, we explore the difference between implied and realized volatility, how the VIX reflects market expectations, and why the “rule of sixteen” helps translate volatility into daily price ...
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 several recent articles for "Know Your Options" I've referred to implied volatility as it relates to the price of options that all expire at the same time. The aim has been to construct trades in ...
Earnings crush is the fall in implied volatility (IV) after earnings is announced. Typically, earnings announcements cause the price of the stock to move more than normal. The move will have more ...
When implied volatility is low, investors may consider adding a volatility ETF, like Quadratic Interest Rate Volatility and ...
Grain markets are no stranger to volatility, but there are times when the size of the price moves seems disconnected from the news cycle. Producers are watching corn swing, soybeans break through ...
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 ...