-
Implied Volatility: What is it & Why Should Traders Care?
Implied volatility is a number displayed in percentage terms reflecting the level of uncertainty, or risk, perceived by traders. IV readings, which are derived from the Black-Scholes options pricing model, can indicate the degree of variation expected for a particular equity index, stock, commodity, or major currency pair over a stated period of time. For instance, the popular VIX Index is simply the 30-day implied volatility reading for the S&P 500. A high VIX level (i.e. percent), or high implied volatility reading, indicates that risk is relatively elevated and there is a greater chance of larger than normal ... (full story)
- Comments
- Subscribe
- Comment #1
- Quote
- Feb 16, 2021 5:48am Feb 16, 2021 5:48am
- Guest
- | IP XX.XXX.14.9
- Comment #2
- Quote
- Feb 16, 2021 7:37am Feb 16, 2021 7:37am
- WinUp667
- | Joined Jul 2020 | Status: Junior Member | 3 Comments
- Comment #3
- Quote
- Feb 16, 2021 10:49am Feb 16, 2021 10:49am
- Guest
- | IP XX.XXX.14.9
- Comment #4
- Quote
- Edited 11:52am Feb 16, 2021 11:15am | Edited 11:52am
- LloydOz
- | Membership Revoked | Joined Oct 2019 | 571 Comments