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.

Options Greeks are mathematical gauges named after Greek letters, such as delta and gamma, that help traders understand how different market conditions will affect their positions.

Implied volatility is arguably the most important factor for options trading. This week, we discuss how to interpret implied volatility. We also show why you should not use implied volatility as an ...

Option writing is a fairly successful trade. Simple reason - Option writers take a lot of risk. There is an unknown risk profile against a small potential profit of premium received. The success is ...

In financial markets, we all understand volatility as something very unstable and very bad. In the case of equities, stocks that have volatile earnings tend to get low P/E valuations in the market.

One of the major factors that influences the price of an option is implied volatility (IV). In simplest terms, implied volatility is the anticipated movement of an underlying equity over a certain ...

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 ...

Volatility is the key ingredient why we trade in Equity. Traders will not get any returns out of an asset if it is not volatile. Volatility, being so important to the characteristic of equities, is a ...

Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big ...