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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When the markets move, the Delta Greek can be one of the most valuable metrics to options traders. There’s a particular correlation between the Delta Greek and options premium that can help traders find out how much the price of an option is expected to change. From my personal experience, I believe this pattern can […]
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Written By: Howard Greenberg As everyday traders put their trading plans into action for 2026, penny stocks might not be on many of their radars. It’s totally understandable why penny stocks may not appeal to the more calculated seasoned traders. Their reputations for susceptibility to manipulation, extreme volatility, and low liquidity make them way too […]
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Make no mistake…day trading options can be very profitable, but it can also be very risky. If you don’t know what you’re doing—you will get burned. When I first started day trading options, I learned that lesson the hard way quite a few times, but those experiences made me a better trader and coach. I’ll […]
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Many traders started wondering if the AI stocks boom has come to an end. It’s hard to blame them after seeing how some of the market’s biggest AI stocks performed this past week… ORCL: Down 16%… AMD: Down 11%… AMZN: Down 11%… NVDA: Down 10%… GOOG: Down 10%… But could Friday’s AI stock rally indicate […]
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IBM stock was among the latest notable moves that turned heads this earnings season. The stock jumped over eight percent, after beating earnings expectations, along with the company’s encouraging growth in software and its AI book of business. Scott Bauer already had IBM stock on his radar going into their quarterly report. He released a […]
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After Microsoft earnings were announced on Wednesday, a lot of traders prepared for the worst going into yesterday’s session. Microsoft (MSFT) fell around 10% yesterday—its worst single-day drop since 2020—wiping out hundreds of billions in market cap. Many thought the market would follow suit. Despite how investors reacted to Microsoft earnings, the market showcased its […]
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