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 ...
"3-step implied volatility" analysis for a more accurate and true mean reverting signals. Cross-market implied volatility view is telling us a dynamic story not visible from the surface. A glance at ...
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 ...
If you’re like most options traders, you already understand the implied volatility of an option is a measure of how much the markets expect the underlying to move over the life of the option. You also ...
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 ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...
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 ...
Except for gold, implied volatilities for most asset classes ended 2025 near a 1-year low. Gold has been the biggest ...
Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...
Stock volatility measures market value fluctuations using metrics like beta and implied volatility. High-volatility sectors in 2025 include healthcare due to labor market tension and policy changes.