Implied volatility (IV) is a market's forecast that is often used to help traders determine the correct trading strategies and set prices for option contracts.
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 ...
Implied volatility, or IV, is one of the major factors that influences the price of an option. In the simplest terms, implied volatility is a forward-looking metric measuring the market's expectations ...
Learn about the volatility ratio indicator's meaning, calculation method, and its significance for traders. Find out how this tool identifies breakout signals effectively.
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 ...
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 ...
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 ...
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 ...
IV crush explained in simple terms. Understand how implied volatility drops affect options pricing and how to calculate the ...