Volatility influences options prices because dramatic price swings amplify gains and losses. While traders can’t look at a crystal ball to see how much volatility the market will endure, implied ...

Earnings crush is the fall in implied volatility (IV) after earnings is announced. Typically, earnings announcements cause the price of the stock to move more than normal. The move will have more ...

In this video, we explore the difference between implied and realized volatility, how the VIX reflects market expectations, and why the “rule of sixteen” helps translate volatility into daily price ...

A volatility crush is the term used to describe the result of implied volatility exploding once the market opens higher or lower than where it closed the previous day. For new investors, implied ...

Palo Alto stock currently trades with a low implied volatility rank, which means it’s a good time to look at a long strangle.

The research views expressed herein are those of the author and do not necessarily represent the views of CME Group or its affiliates. All examples in this presentation are hypothetical ...

Options Greeks are one of many factors that are important to understand when trading options. The aptly named "Greeks," are measurements relative to risk named after Greek letters. The measurements ...

Implied volatility is a powerful but often misunderstood metric that plays a major role in options trading. Implied volatility doesn’t tell you what’s going to happen to an option’s price, but it ...