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 ...

Discover how the Cboe SKEW Index assesses market volatility and perceived tail-risk in the S&P 500, despite its limitations ...

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 ...

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 ...

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 ...

Implied volatility can be a confusing concept for investors who are just starting to trade options. While the idea of volatility is easy to understand, trying to estimate it is more difficult. However ...

Convexity: Convexity measures how sensitive the price of a financial instrument, such as a stock, is to changes in interest rates. For instance, if a stock’s options have high convexity, their prices ...

Volatility can be an option trader's best friend or worst enemy, depending on how it's approached. High implied volatility ...

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 ...

Peter Gratton, Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, economics, and public policy. Peter began covering markets at Multex (Reuters) and has ...

Once you learn the basic terminology of options trading - like strike, premium, and in the money - you'll know enough to place some trades on your own. Next, it's time to starting making some real ...