Implied volatility, or IV, is one of the major factors ... since this will increase the cost of entry and breakeven point on the trade. On the other hand, option sellers may want to capitalize ...
Trading VIX (Volatility Index) options requires understanding their unique structure, as they track the implied volatility of the S&P 500 over the next 30 days rather than a specific underlying asset.
U.S. financial markets last year were more sensitive to economic surprises than usual, and as Donald Trump prepares to begin ...
Is it to speculate on a bullish or bearish view of the underlying asset ... be a key factor in identifying your option trade/strategy. Implied volatility lets you know whether other traders ...
However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a big move for Dynavax Technologies shares ...
But straddles aren’t the only way to make a volatility-based trade. Often, earnings week sees overpriced options — implied moves that are far greater than the average earnings move.
Before a company reports earnings, implied volatility is usually high because ... Neutral traders can look at iron condors. When trading iron condors over earnings, it is best to keep the short ...
However, implied volatility is only one piece of the puzzle when putting together an options trading strategy. Clearly, options traders are pricing in a big move for Astronics shares, but what is ...