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.

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 ...

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 ...

Learn about the put calendar strategy, where traders sell a short-term put option and buy a longer-dated one, optimizing profit through time decay and volatility.

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 ...

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 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 ...

Implied volatility is one of the most tried and true methods for objectively measuring expected volatility in the spot market. Derived from currency options with different maturities, implied ...