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    January 24, 2020

    How We Use Implied Volatility To Calculate the Expected Move

    Remember, we trade in the world of probabilities, not possibilities.  But how do we know what is reasonable or probable?  Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT

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    January 14, 2020

    All of This Talk of Implied Volatility, What Is It Really?

    Implied volatility is a parameter that is part of an option pricing model, typically some derivation of the Black-Scholes model, which gives the theoretical price of an option. Implied volatility shows how the marketplace views where volatility should be in the future. Since implied volatility is forward-looking, it helps us gauge the sentiment or expectation […]

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    December 30, 2019

    The Difference Between Implied Volatility and Vega

    Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]

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    October 20, 2019

    The Difference Between Implied Volatility and Vega

    Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]

    Read Article
    September 24, 2019

    The Difference Between Implied Volatility and Vega

    Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]

    Read Article
    September 11, 2019

    How We Use Implied Volatility To Calculate the Expected Move

    Remember, we trade in the world of probabilities, not possibilities.  But how do we know what is reasonable or probable?  Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT

    Read Article
    August 20, 2019

    How We Use Implied Volatility To Calculate the Expected Move

    Remember, we trade in the world of probabilities, not possibilities.  But how do we know what is reasonable or probable?  Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT

    Read Article
    August 12, 2019

    How We Use Implied Volatility To Calculate the Expected Move

    Remember, we trade in the world of probabilities, not possibilities.  But how do we know what is reasonable or probable?  Implied volatility gives us the answer. Click the video below to find out how Follow me on Twitter @MikeShorrCBOT

    Read Article
    August 7, 2019

    The Difference Between Implied Volatility and Vega

    Implied Volatility (IV) and Vega are very much related but are by no means the same thing. Implied volatility has no direct correlation to actual past historical or statistical volatility; rather it is a measure of predicted future movement. Implied volatility tends to increase when there is uncertainty or anticipated news, while it tends to […]

    Read Article
    July 31, 2019

    Why Don’t VIX Options Move In Step With the Underlying Futures?

    Today is a great day to talk about the VIX.  It can be confusing. The VIX index and futures are connected by a statistical relationship that depends on how fast the VIX tends to move toward its average level, the volatility of the index and how much time is left until expiration. Near expiration, the […]

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