Implied Volatility
|
| ||
| The volatility computed using the actual market prices of an option contract and one of a number of pricing models. | ||
|
Additional Comments:
Example: If the market price of an option rises without a change in the price of the underlying stock or future, implied volatility will have risen.
|
Related Terms: | ||
Volatility Stops Monitoring implied volatility is critical in long neutral delta trading. Check the current volatility of the ... Vega The sensitivity of an option price to volatility. Typically, options increase in value during periods of ... Back Spread A back spread is essentially an inverted ratio spread.When constructing a back spread, you are selling ... | ||
« View the Stock Market Dictionary »
Latest Financial Advice
- Index Fund vs Mutual Fund
- Roth IRA Tax Guidelines
- Impact of News on Trader’s Psychology and Market Trends
- Overconfidence Bias in Stock Trading: A Critical Analysis
- Mastering Mindfulness Practices for Traders
- Impact of Market Volatility on Individual Psychology
- Leveraging Intuition in Stock Trading: A New Approach
Free Investment Advice
| Get free stock market tips and investing advice by subscribing to our newsletter: |
* Your information will not be shared or sold. |
Recommended Reading
Categories
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Reviews
- Stock Market Dictionary
RSS