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 ...
Jeff Kohler has 20+ years of experience as a trader/analyst. He currently runs TradingAddicts.com, providing market insight and analysis to investors. Michael Boyle is an experienced financial ...
Option buyers should be wary when implied volatility appears to be running much higher than historical Today we are taking a closer look at volatility -- specifically, what it means when there is an ...
In "Know Your Options," I often refer to the implied volatility of options as an important tool for determining when to enter and exit options trades. The aim is generally to construct trades in which ...
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 ...
I got overwhelmingly positive feedback about last week's column on implied volatility, so I decided to push a little further into the subject. As always, please drop me a line at dborun@zacks.com if ...
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 ...