Implied Volatility Concepts

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

Implied Volatility Basics

Implied Volatility Concepts: 1 Standard Deviation Range

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

What is the VIX Index?

Implied Volatility Concepts: S&P 500 vs. the VIX Index

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

The Expected Move

Implied Volatility Concepts: 1 Standard Deviation Expected Range

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

Trading VIX Options

Implied Volatility Concepts: Trading VIX Options

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

Trading VIX Futures

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Implied Volatility Concepts: Trading VIX Futures

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

The VIX Term Structure

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Implied Volatility Concepts: VIX Term Structure

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

IV Rank vs. IV Percentile

Implied Volatility Concepts: Trading VIX Futures

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.

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