Implied Volatility ConceptsTruly understanding implied volatility is crucial to becoming a successful options trader. Implied Volatility Basics Implied volatility represents a stock's option prices, and is one of the most important options trading concepts to master. Read Guide → What is the VIX Index? The VIX Index is a commonly watched indicator, as it measures option prices on the S&P 500 Index. Read Guide → The Expected Move The "expected move" represents a probabilistic forecast for a stock's price in the future. Read Guide → Trading VIX Options Want to trade VIX options? Be sure to understand common misconceptions. Read Guide → Trading VIX Futures(Optional Topic) VIX futures can be used to trade expectations related to changes in the VIX Index. Read Guide → The VIX Term Structure(Optional Topic) The VIX term structure represents the relationship between near-term and long-term VIX futures contracts. Read Guide → IV Rank vs. IV Percentile 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. Read Guide → Back to Free Guides ➜
