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 ...

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 ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial ...

With the rise in volatility within markets, it is important to understand what implied volatility is and how it can be used as a tool when it comes to trading. According to the CFA institute, implied ...

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 ...

A volatility crush is the term used to describe the result of implied volatility exploding once the market opens higher or lower than where it closed the previous day. For new investors, implied ...

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.

According to the CFA institute, implied volatility is a measure of the expected risk with regards to the underlying for an option. The measure reflects the market’s view on the likelihood of movements ...