March 23, 2020

The Difference Between Implied and Historical Volatilities

In contrast to historical volatility (HV), which looks at actual asset prices in the past, implied volatility (IV) looks ahead. … Implied volatility can be derived from the price of an option. Specifically, implied volatility is the expected future volatility of the stock that is implied by the price of the stock’s options

Click the video below to see how we dive into this important aspect of options trading.

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about the author:

Scott Bauer

A respected market commentator seen on Bloomberg, Fox Business, CNBC and other major financial networks, Scott Bauer has 25 plus years of professional equity and index options experience at the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) and as a Vice-President/trader for Goldman Sachs. Scott graduated with Honors from the University of Illinois Business School and has taught classes both at his alma mater and at the CBOE.

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A.I. technology has unique capabilities that are helping more people reshape how they trade. Its dynamic abilities to make specific technical calculations at unparalleled speeds help identify trade setups triggered in stocks with historically high probabilities of making potentially explosive moves. What Are Trade Setups? In a nutshell, trade setups are technical formations a stock […]

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