Quantcast
 
New book by Larry Connors Click here Improve your trading - See how

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

Trading the Post-crash Implied Volatility Skew, Part 2
May 11, 2009
Jeff Augen
TradingMarkets contributor Jeff Augen concludes his discussion on implied volatility and offer some trading opportunities in order for traders to take advantage of these high volatility levels. (more)
Trading the Post-crash Implied Volatility Skew, Part 1
May 5, 2009
Jeff Augen
Understanding volatility is a very critical part of options trading. In part 1 of this series, TradingMarkets contributor Jeff Augen helps options traders to understand more about implied volatility. (more)
How to Use the VIX to Guide Your Trading Decisions
February 4, 2009 about VIX
Ken Trester
What does volatility mean to us as options traders? Plenty, since it measures risk and investor sentiment. Options trader Ken Trester examines why volatility is an important factor to consider before making an options play. (more)
Using Option Greeks: Implied Volatility and Investor Fear
September 19, 2008 about SPX
John Jagerson
Implied volatility is relatively simple to understand but is hard to predict. TradingMarkets contributor John Jagerson discusses how to use IV to forecast market direction and make trading decisions. (more)
Horizontal Debit Spreads
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)
V is For Volatility: Learning to Love the VIX
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)
SPX Will Hit New Highs Before Reversing
October 3, 2007 about IYR
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)
Strategy Gains Despite SPX Two-Day Decline
June 27, 2007
Kevin Haggerty
The plan was to buy weakness this week into the end of Q2... (more)
Trading the Zones
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)
Strategy for the Low SPX Volatility
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)
Page 1 of 2     1  2      Previous  |  Next

<< Back to Trading Glossary Index


Free newsletters by the TradingMarkets editorial team.

  Morning Coffee with TradingMarkets

  Larry Connors Trading Lesson of the Day

  7 Stocks You Need To Know For Tomorrow

  TradingMarkets Weekly Newsletter

  PowerRatings Newsletter

  Most Overbought and Oversold ETFs

  7 ETF's You Need to Know

PREMIER SPONSORED LINKS
TRADE CENTER
 
RELATED SITES
Nothing but forex
Please call 1-213-955-5858 ext. 1

About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

© Copyright 2009 The Connors Group, Inc.


All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

© 2009 The Connors Group, Inc.