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 Know Your Options, I tend to mention Implied Volatility quite often. I’m sure most readers already understand the general idea that options with high IVs are expensive and options with low IVs are ...
The volatility term structure, which plots implied volatility against different expiration dates for options on the same underlying asset, can reveal when potential catalysts are anticipated by ...
Here's how rising volatility helps turn positions into wins. It's no secret that stock volatility has jumped in recent months. This has occurred to an extent with most stocks, but some have seen much ...
Implied volatility is the most important concept and tool in options trading. It gives you a simple metric to determine how expensive or how cheap an option is relative to other similar options. To ...
Elvis Picardo is a regular contributor to Investopedia and has 25+ years of experience as a portfolio manager with diverse capital markets experience. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is ...
J.P. Morgan analysts put together a list of stocks that have cheap implied volatility according to their scoring percentage. Bram Kaplan, head of Americas Equity Derivatives Strategy at J.P. Morgan, ...
IV spikes hint at traders to anticipate an IV crush With the new year approaching, many traders are reassessing their strategies and preparing for market conditions ahead. While implied volatility (IV ...