Implied Volatility Concepts

Truly understanding implied volatility is crucial to becoming a successful options trader.

Implied volatility represents a stock's option prices, and is one of the most important options trading concepts to master.

The VIX Index is a commonly watched indicator, as it measures option prices on the S&P 500 Index.

The "expected move" represents a probabilistic forecast for a stock's price in the future.

Want to trade VIX options? Be sure to understand common misconceptions.

(Optional Topic)

VIX futures can be used to trade expectations related to changes in the VIX Index.

(Optional Topic)

The VIX term structure represents the relationship between near-term and long-term VIX futures contracts.

How do you know if a stock's current implied volatility is high or low relative to its historical levels? IV rank and percentile can help.