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 ...
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 ...
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 ...
How to profit from an IV crush with options strategies Understanding IV (implied volatility) Crush is crucial for options traders because it is a key component of option pricing. In this article, we ...
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 ...
In this article, we delve into the concept of volatility and explore intriguing opportunities to use it to our advantage. Generally, volatility refers to the magnitude of price fluctuations relative ...
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 ...
High implied volatility rank signals that options prices are elevated compared to their historical norms, creating unique opportunities for those who know how to capitalize on them.
Once you learn the basic terminology of options trading - like strike, premium, and in the money - you'll know enough to place some trades on your own. Next, it's time to starting making some real ...