Volatility, which refers to the propensity of a security's price to move higher or lower, has several key concepts within the realm options trading. Implied volatility (IV) heavily influences the ...
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 ...
Most traders don’t struggle with covered calls because the strategy is broken. It’s because they start in the wrong place: ...
Options trading has become popular, especially during periods of high volatility in the market. Traders use the IV Rank metric to identify opportunities where implied volatility is at extremes.
As new traders flood the market, a return to the basics may help novices understand the fundamentals of options trading. Volatility, for example, refers to the propensity of a security's price to move ...
This measures the market's expectation of future price volatility. High IV can inflate options premiums, while low IV can offer bargains. Technical analysis is a cornerstone of day trading strategies.
The combination of greater accessibility, better education and highly unpredictable markets makes options an essential part ...