Learn about the Black-Scholes model, how it works, and how its formula helps estimate fair option prices by weighing ...

When trading stocks or stock options, there are certain indicators you may use to track price momentum. Implied volatility, which measures how likely a security’s price is to change, can be useful for ...

Explore the VIX, the go-to index for tracking S&P 500 volatility. Learn about its calculation and impact on your investment ...

Ever since the seminal contributions of Bruno Dupire (1994) and Emanuel Derman and Iraj Kani (1994), who independently developed a discrete-time binomial tree version of the same result, it has been ...

After Black Monday in 1987, options implied volatilities started to display a ‘smile’ in relation to different strike prices, which models at the time could not capture. In 1994, two solutions were ...

Volatility trading is different from other types of trading, yet it can be a profitable form of playing the stock market for those interested in pursuing it. Everyday trading tends to focus on the ...