Join us in Chicago for an amazing weekend! tastytrade proudly presents Learning Man!

Event Details

Options Jive

Monday – Friday | 8:40 – 9:00a CT

Implied Volatility and Expectations

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We often use a short formula to compute expected ranges for a stock price. The formula includes the underlying price, implied volatility, and the number of days to expiration. Changes in the stock price and changes in implied volatility have the same impact on the expected range. However, when we look closer at how underlying prices and implied volatility move, we see that implied volatility moves more dramatically than the underlying price thus having a greater impact on the expected ranges.

Options Jive More installments

See All »

Latest tastytrade Videos As of November 19

Most Shared From the last 30 days