Implied volatility
The volatility figure that, when used in a theoretical pricing model, gives precisely the market price for an option. It is the volatility "implied" by the market and "explains" the market price.
Articles related to Implied volatility
July 24, 2008
Len Yates
The horizontal debit spread (often called a calendar spread or time spread) is a neutral strategy when constructed using at-the-money options. As such, it is a good strategy to use in a choppy, sideways market. (more)November 21, 2007
David Penn
One of our TradingMarkets Daily Market Bias indicators is called the VIX Alert. This indicator, like all the indicators in our Daily Market Bias department, can be used by traders to determine whether or not there is a directional bias in the next day's trading. (more)October 3, 2007
Kevin Haggerty
The Generals obviously put some new Q4 money to work Monday, and it was in the most oversold sectors. But they can play the average down game, they have deep pockets. (more)June 27, 2007
Kevin Haggerty
The plan was to buy weakness this week into the end of Q2... (more)
March 12, 2007
Kevin Haggerty
This is a triple expiration week, with the market coming off a mini-meltdown, so the odds favor a strong trend-up day before Friday. (more)February 9, 2007
Kevin Haggerty
The energy sector continues to be a daytrader's gold mine of trading opportunities, especially with the major index contracted volatility. (more)December 1, 2006
Joe Corona
I recall saying...We’ve got to get in the pit with guns blazing. (more)November 28, 2006
Len Yates
The advantage of options is that when you're correct about the direction of the market, gains are unlimited. When wrong, losses are limited... (more)November 27, 2006
Len Yates
Volatility peaks often go with market bottoms and volatility lows corresponded with market tops. What does this mean to the options trader?
(more)
April 26, 2006
Kevin Haggerty
Equity allocations should be significantly reduced by now, or at least protected. (more)April 3, 2006
Brett Steenbarger
One of my favorite ways of informally testing the value of an indicator is to check its predictive performance... (more)
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