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    March 15, 2019

    If You Are Going To Trade VIX Options, You Need To Know These Things

    Created by the Chicago Board Options Exchange (CBOE), the Volatility Index, or VIX, is a real-time market index that represents the market’s expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors’ sentiments. If you want to trade OPTIONS on the […]

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    March 14, 2019

    How To Use Implied Volatility To Measure A Move In A Stock

    Remember, we trade in the world of probabilities not possibilities.  It is important to be reasonable with your expectations when talking about a directional play in stocks using options.  What is reasonable.  How is one to know? Click the video below to learn more about how to calculate the expected move in a stock. Follow […]

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    March 14, 2019

    What Exactly Does Implied Volatility Mean?

    In simple terms, IV is determined by the current price of option contracts on a particular stock or future. It is represented as a percentage that indicates the annualized expected one standard deviation range for the stock based on the option prices. For example, an IV of 25% on a $200 stock would represent a […]

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    December 12, 2018

    How Big Of A Move Can We Expect?

    It’s hard enough to project which direction a stock is going to go.  But then what?  How far is it going to move over a given time period?  Click the video below to find out exactly how we calculate the magnitude of the projected move using implied volatility. Follow me on Twitter: @cboesib

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