Articles tagged with "Implied Volatility"

Speak Greek? How the Greeks Apply to Options Trading

Speak Greek? How the Greeks Apply to Options Trading

Do you know and understand what the Greeks are and how they influence your options trading? Options trading is more difficult than stock trading because it is immensely more complicated. In stock trading, investors simply need to decide whether the equity is going higher or lower. It’s a totally different game with options. In its […]

How Leveraging IV Can Vastly Improve Trading Plans

How Leveraging Implied Volatility Can Vastly Improve Trading Plans

So often — far too often, in fact — traders and investors overlook IV in their trading strategies. The reasons for doing so vary. Some find IV too complex and either don’t understand what it measures or don’t know how to effectively use it. Others use time frames that they believe render IV meaningless, or […]

Right Direction, Wrong Options? Your Problem Might Be Implied Volatility

In our last post, we were discussing end-of-day pricing vs. real-time data. In options, a lot of different variables go into pricing these contracts. One of those inputs is referred to as implied volatility. Implied volatility, or IV, is an input that many traders have likely heard of, but may not fully understand. However, understanding […]