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 ...
Learn about the volatility ratio indicator's meaning, calculation method, and its significance for traders. Find out how this tool identifies breakout signals effectively.
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 ...
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 ...
John Summa is the founder of OptionsNerd.com and has authored a number of books. He has 6+ years as a chief economist and derivatives strategist. Gordon Scott has been an active investor and technical ...
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 ...
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 percentile (IVP) is a crucial metric in the world of options trading. Delve into the intricacies of IVP, its calculation and interpretation, and see how it compares to other ...