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 ...
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 ...
Implied volatility measures how sharply the market expects an asset's price to move in the future. In crypto markets—where ...
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 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 ...
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 ...
The reason why we sell options and capture premium is because of the high likelihood that implied volatility is dramatically overstated. When I started out selling puts and covered calls, I had the ...
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